What Happens to the Credit File When a Person Dies

When a person dies their credit report is not deleted from the credit bureau immediately.  Instead the credit bureau flags the credit report when it receives information about a person’s death.  Flagging the file is important so as to make sure that the person’s identity does not get stolen as a result of identity theft to commit credit fraud.  When a credit file of the deceased person is flagged the lenders will get notified immediately if someone tries to apply for credit under the deceased person’s identity.

There are several ways in which a person’s death can be reported to credit bureau.  The most common way is for the spouse of the family of the deceased to ask the lenders to close particular credit accounts going to person’s death.  In this case when the lender updates the information with the credit bureau the account will reflect the deceased status of the account holder.
Another way for a credit bureau to get notified of person’s death is true the Social Security Administration or the state execute.  The Social Security Administration can only notify the credit bureau of the death of person if that person was receiving social benefits and if it gets notified by the members of the family about the death of the person.  A state executor can also report the death of a person to the credit bureau.  It should be understood that the report that is received from the Social Security Administration or from the state executor about the death of a consumer will apply to the entire credit history whereas the report received from Glenda will only be applicable to the particular account that the lender reports to the credit bureau for.

Any account that has been reported as belonging to a deceased person will be deleted after seven years.  Eventually all the accounts will get deleted as well and the credit history will cease to exist.  When the Social Security Administration on state executor reports the death of a consumer to the credit bureau then the entire credit history will be deleted in one go after a period of seven years.

It is rare but certain complications might arise when reporting the death of a person to the credit bureau.  If the credit account is a joint account the lender might report both the parties as dead instead of just one.  If this happens to you you should contact lender in order to update and collect the information.  You the administration in very rare cases may report a person who is well and alive as dead to the credit bureau. This is usually because when you hear people say that the credit bureau says they are dead.  You should contact both the credit bureau and the Social Security Administration in order to update the information.