How to Remove Closed Accounts from Your Credit Report | Mizrahi Kroub LLP (2024)

FAQs

How do I remove all closed accounts from my credit report? ›

Closed accounts can be removed from your credit report in three main ways: (1) dispute any inaccuracies, (2) write a formal goodwill letter requesting removal or (3) simply wait for the closed accounts to be removed over time.

A 609 dispute letter is a way to request that credit bureaus, such as Experian, remove erroneous information from your credit report. The letter stems from the Fair Credit Reporting Act (FCRA), which was enacted in 1970 and updated in 2023.

A goodwill letter is a formal request asking the credit bureau to remove a closed account from your credit report as a courtesy. Politely ask the credit bureaus to remove the account to improve your credit score.

Despite the misleading name, 609 is not exactly a dispute; rather, it's a letter/document requesting that the credit bureaus give you information regarding the accuracy of your credit report.

A pay for delete letter is a negotiation tool intended to get negative information removed from your credit report. It's most commonly used when a person still owes a balance on a negative account. Essentially, it entails asking a creditor to remove the negative information in exchange for paying the balance.

A business uses a 623 credit dispute letter when all other attempts to remove dispute information have failed. It refers to Section 623 of the Fair Credit Reporting Act and contacts the data furnisher to prove that a debt belongs to the company.

"The 609 loophole is a section of the Fair Credit Reporting Act that says that if something is incorrect on your credit report, you have the right to write a letter disputing it," said Robin Saks Frankel, a personal finance expert with Forbes Advisor.

Send a dispute

The FCRA allows consumers to dispute credit report errors and fraud. So, if you check your credit report and discover a collection account that shouldn't be there, you can send a dispute to Equifax, TransUnion, or Experian and ask them to remove it.

Do goodwill letters work? Your lender is not obligated to honor your goodwill adjustment request or help remove negative marks from your credit report. “It's likely they could say yes; it's likely they could say no, and I think there's an equal chance of either response,” McClary said.

What is a good faith letter for credit removal? ›

What is a goodwill letter? When you write a goodwill letter, you're asking a creditor or collection agency to remove a negative mark on your credit reports. Why bother? Dings on your reports, such as a late payment or an account in collections, stay on your reports for seven years and weigh down your credit scores.

The truth is that there are no magic words to stop a debt collector from collecting the debt. In case you are wondering what the 11 word phrase to stop debt collectors is supposed to be its “Please cease and desist all calls and contact with me immediately.”

Send a written request to remove the account from your credit report directly to the creditor that reported the information to the credit bureau, McClary says. Ask politely if the creditor will remove the account now that it is no longer active.

Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.

Negative information typically falls off your credit report 7 years after the original date of delinquency, whereas closed accounts in good standing usually fall off your account after 10 years.

If you're applying for a conventional loan with charge-offs, collections, and judgments, you may face a more complicated mortgage approval process. But getting a loan is still possible, especially if you're working with a lender experienced in helping buyers with derogatory accounts on their credit reports.