UPDATED: October 02, 2022

Are you concerned that these old, closed accounts are hurting your credit score? Many people have a hard time getting these accounts removed because the process can be confusing and intimidating. It can be frustrating when you're trying to improve your credit score and these outdated accounts are preventing you from doing so. Fortunately, there is a way to remove them from your report. 

So don't worry – we're here to help. In this post, we'll explain the letter-writing process step by step, so you can make sure you understand what to include in your letter.

We'll also provide free templates for writing these goodwill letters to remove closed accounts from your credit report. This way, you can easily copy and replace our language with your own information.

While there's no guarantee that your lender or credit company will grant the request, it's definitely worth a try as it's a step closer to improving your credit score.

Check out these sample letters and read to the end so you won’t miss our PRO TIP on whether you really need to get these closed accounts removed or not! 

What a Letter to Remove Closed Accounts Can Accomplish

A Remove Closed Accounts Letter is a formal letter you can send to credit companies and lenders that asks them to remove any records of closed accounts from your credit report. 

This is especially important if the account was closed years ago and has since caused negative marks on your Equifax, Experian, or TransUnion credit report.

This letter is often referred to as a “goodwill letter” because you are asking them to remove negative entries before the 7 or 10 years it would normally take for them to disappear.

Removing these negative entries can be helpful when applying for new loans or credit lines, as it can improve your chances of being approved. It can show creditors that you have a clean record and are therefore a low-risk borrower.

Additionally, this letter can also help to improve your credit score by removing any late payments or other derogatory marks associated with the closed account.

While there's no guarantee that your letters will be accepted, it's still worth writing them as it doesn't hurt your chances and may lead to the removal of some or all of the negative entries on your credit report. This, in turn, can help improve your credit score.

If you have clean credit now and would like to remove any trace of past financial mistakes, a Remove Closed Accounts Letter can be a useful tool.

What Should a Letter To Remove Closed Accounts From Credit Report Contain?

A letter to remove closed accounts from your credit report is essentially a goodwill letter. A goodwill letter means you are asking for special consideration. It’s not a dispute letter where you are complaining because of an error or inaccurate entry on your report.

It's then important to write in a polite, professional tone. You want to show that you're taking responsibility for the account and are asking for a favor, not demanding it.

When writing a goodwill letter to ask for the removal of closed accounts from your credit report, you should include the following information in the following format below.

Your Complete Name

Your Address

Your Contact Information

Current Date

Company Name

Company Address

To Whom It May Concern,

State the reason you're writing which is to request to have the entries removed from your credit report. Explain that this is a closed account. Indicate the necessary information such as your credit information, account number, date, nature of the entry in your credit report, etc.

Explain the reason why the negative entries happened in the first place. Reasons such as medical bills, job loss, and other financial hardships are usually accepted. You can enclose any supporting documentation for your case.

Indicate that you have been trying to improve your credit standing and would appreciate their help in this matter. Give examples of how you have been trying to achieve this. State here whether you're enclosing any proof or documents to support your letter.

Politely request again that the recipient take action to have the entries removed and highlight how it can greatly help your current financial standing.

Thank them for their time and state that you will be eagerly waiting for their reply.

Sincerely,

Your Name

Enclosures:

  • Copy of your credit report with the negative entries highlighted.
  • Proof that the account is closed such as a letter from the creditor or bank.
  • Any other supporting documentation to prove your explanation or statements.

Sample Letter 1: Remove Closed Accounts from Your Credit Report – Due to An Accident

James Johnson

1011 W Olympic Blvd

Beverly Hills, California, 90211

[email protected]

October 01, 2022

ABC Bank International

2022 Nordhoff St

Northridge, California, 91324

To The Management,

I am writing this letter regarding the late payment entries on my credit report that are associated with my closed ABC Bank International credit card account ending in 1234. The late payment entries were recorded back in October to December 2018.

I am requesting that you please remove these entries from my credit report as these have already been paid off and the account is now closed since January 2020.

I do recognize that these late payments were my responsibility and the only reason why I was not able to pay on time was because of a tragic accident I encountered. I was in the hospital for several weeks due to a broken leg and not only was I unable to work, but I was also unable to make any payments to my accounts.

I have now made a full recovery and I am currently employed again. I have also started making timely payments on all my other accounts. I would greatly appreciate it if you can please take action to have these negative entries removed from my credit report. It will greatly help me in my efforts in improving my credit status.

I have enclosed a copy of my medical records for your checking as well as a copy of my credit report highlighting the late payment entries. I have also included my contact details if you have any questions.

Thank you for taking the time and I will eagerly await your immediate response.

Sincerely,

James Johnson

Enclosures:

  • Copy of my credit report with entries highlighted
  • Proof that the account has been closed
  • Medical records with regards to my accident

Sample Letter 2: Remove Closed Accounts from Your Credit Report

Mary McDonald

101 S Washington Ave

Livingston, Texas, 77351

[email protected]

November 15, 2022

Clark Clarkson

Managing Director

Prime Private Loans

202 N Madison Ave

Livingston, Texas, 77351

Dear Mr. Clarkson,

I am a previous customer of Prime Private Loans and I had an account with your company from January 2015 to October 2019. I made all my payments on time until I lost my job in 2017 due to a mass layoff in my company.

Since I was unemployed, I experienced financial hardships being a single mom and the sole provider of my family. This was the reason I was unable to make timely payments on my loan from March to June 2017.

I am writing this letter to request that you kindly remove the late payment entries on my credit report during this period. Since the account is now closed and all my dues have been paid off, I would greatly appreciate it if you can kindly remove the late payment entries as they no longer accurately reflect my current credit standing.

I am now employed again and I am making all my payments on time. I have also started to improve my credit score and I would like to maintain a good credit standing with the hopes of being able to secure a home for my children in the near future.

I have included a copy of my payment history, with the entries highlighted as well as my contact information below.

Thank you so much. I'm looking forward to receiving your response as soon as possible.

Sincerely,

Mary McDonald

Respectfully,

Mary McDonald

Enclosures:

  • Copy of my credit report with late payment entries highlighted
  • Proof that the account has been closed and all dues have been paid off
  • Termination letter

Sample Letter 3: Remove Closed Accounts from Your Credit Report

Tom Thomas

101 Beach Rd

Sarasota, Florida, 34242

December 02, 2022

Car Deal Auto Loans

303 Main Rd

Sarasota, Florida, 34242

To Whom It May Concern,

I had an auto loan with your company from September 2015 to August 2020, which is now closed. I am writing to you because I would like to kindly request that the late payment entries on my credit report for the months of December 2016, January 2017, and February 2017 be removed.

I understand that it was my responsibility to pay off my loan on time. However, the reason I was unable to make timely payments on my car loan during this period was that I experienced financial difficulties after my father was diagnosed with cancer.

The whole family, including myself, had to pitch in to help with his medical expenses and as a college student at that time, I was also forced to take on extra jobs and even stop attending classes to be able to cover my share of the expenses. Despite this, I still worked hard to make sure that I made partial payments to keep my account from going into default.

Now that the account is already closed and I have already paid off the entire loan, I would greatly appreciate it if you could please have these negative entries removed from my credit report.

I am planning to pursue further studies in the medical field and I am working hard to improve my credit score so that I can be able to apply for financial aid. Having these negative entries on my report is proving to be a roadblock in my efforts to improve my credit score and I would greatly appreciate your help in this matter.

I have enclosed relevant documents to support my request, including a copy of my credit report with the late payment entries highlighted, proof that I have already paid off the loan in full, and relevant medical documents.

I am grateful for your time and eagerly await your reply.

Sincerely,

Tom Thomas

What Impact Will a Removal of a Closed Account Have on My Credit Score? Do I Really Need It Removed? 

If you're already looking for a sample letter to remove closed accounts from your credit report, chances are that the entries on those accounts are lowering your score. 

Once these accounts are removed, your score may increase and lenders who will review your credit report in the future will see a more accurate portrayal of your current creditworthiness.

Removing them can then help improve your chances of being approved for new lines of credit in the future. 

Many lenders consider applicants with a history of late payments and other negative entries to be high-risk borrowers, so having these cleaned up will benefit you greatly in the long run.

However, if you have a fairly positive standing in those closed accounts, removing them may do more harm than good as they could be seen as positive contributing factors to your credit score. 

For example, a long-standing credit history with a lender can be beneficial even if it’s already closed and removing this can decrease your score. You don’t want this to happen! 

So here’s a PRO TIP: Before writing a letter to remove closed accounts from your credit report, make sure to review your credit history carefully and determine whether or not it would be in your best interest to do so. 

You can consult with a credit expert or ask for a second opinion before having these closed accounts removed.  

How to Use These Sample Letters 

Writing to credit companies and lenders does not need to be complicated. You can follow these sample letters and replace your information to make sure you communicate your situation effectively!

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