Closing a Credit Card Will Not Delete Late Payments Record from Credit Report

Closing/canceling a credit card can sometimes have a temporary negative effect on your credit scores causing them to decrease. However, the record of tha. A credit card accounts that was closed and had a zero balance with no negative history will remain on the credit report for a period of 10 years from the date that it was reported closed.

A credit card account that was closed with negative history associated with such as late payments will remain on the credit report for a period of seven years from the date of the first reported delinquency.

This means that an account with positive information and no negative history will remain on the credit report a longer period of time thus impacting your credit scores positively. A credit card accounts that was settled or had negative history associated to it will stay on for a shorter period of time but will continue to impact your credit score negatively although the impact will subsequently be less with the passing time.

The positive information is retained for a longer period of time as it is considered to be an important indicator of the creditworthiness of an individual. The depth of the positive information on a credit report shows the consumer to be a low risk individual.

Closing credit card accounts may have an initial negative impact on your credit score as your debt utilization ratio will increase. If the balances on your credit cards remain the same canceling out a credit card will decrease the total amount of limit available to you making it seem like you have increased your debt amount as compared to your credit limit.