When looking through your credit report, it’s important to understand the impact the information on your report can have. One thing you may be unsure about is whether or not the inclusion of a closed account on your report should be removed, and if so, how to do so. If you find a closed account on your report, it’s in your best interest to keep reading to learn how this can influence your credit score, if you should remove this information, and why it’s in your best interest to connect with an experienced Arroyo Grande consumer lawyer who can assist you through any issues you may face.
What Is a Closed Account and What Impact Can It Have on My Credit?
When there is a closed account on your credit report, it means charges can no longer be made to the account. This can be closed due to inactivity or because of habitually missed payments.
As all information on your credit report can impact the outcome of your payments, so even including a closed account can influence your score. If your account is in good standing, meaning you never missed payments or were late, this can actually have a positive influence on your credit score. An account in good standing can influence your score for ten years. However, if your account is not in good standing, such as having missed or late payments, it can hurt your score for seven years.
How Can I Have This Information Removed?
If you find that you have a closed account on your report, it’s important to understand that you don’t need to have all this information removed, especially if the account is in good standing. However, if the account is negatively impacting your score, you may be able to have this information removed to help improve your score.
Generally, the first option is to write a “Goodwill” letter. Essentially this is when you write a letter to the creditor the closed account is with. You may be able to explain the circumstances of why you missed one or two payments and politely ask to have the information removed from your account. However, it’s important to understand that the creditor is under no legal obligation to remove the information from your account.
Another option is to dispute the inclusion of the information with the credit reporting agency. However, this is only an option if the information on the account is erroneous or the result of fraud.
When you have a closed account on your report that is negatively impacting you, understanding your legal options is critical. Writing a goodwill letter can help improve your chances of having the information removed. However, if this is the result of fraud or an error, disputing the charge is critical. At Loker Law, our dedicated legal team understands how complex these matters can be, which is why our team is ready to help. Connect with us today to learn how we can fight for you during these times.
