Q&A:Closing credit accounts

Dear Liz: I paid off and closed two large home equity lines of credit in April, but these HELOCs still appear on my credit report. The lender says they reported the transactions to the credit reporting agencies “immediately” and that the delay in having them removed is the credit bureaus’ fault. Are they right? What is required?

Answer: Closing a credit account won’t remove it from your credit reports. Furthermore, positive or neutral information can be reported indefinitely. The only time limit applies to negative information, which typically must be removed after 7 years.

If the lines of credit are showing as open accounts on your credit reports, then you certainly can file disputes with the credit bureaus and ask that the account status be updated. But since closing credit accounts usually can’t help your credit scores and may hurt them, you probably don’t need to be in a rush to make sure this information is reported accurately.

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