A closed credit card account may still appear on your credit report, affecting your credit score and financial profile. Many people believe that once a card is closed, it disappears immediately from their report, but that’s not the case. If you’ve recently closed a credit card and it still appears on your CIBIL or other credit reports, you may wonder how to remove it.
In this blog, we will explore how to remove a closed credit card from your credit report, how long closed accounts stay on your report, their impact on your credit score, and what happens to unpaid debts after seven years. I will also share my personal experience of closing my HDFC Regalia credit card and dealing with its impact on my credit report.
How to remove a closed credit card from your credit report?
If you have a closed credit card on your credit report and want it removed or updated, here's what you can do:
- Wait for It to Update: When you close a credit card, it usually stays on your report for 7 years, but it should show as "closed" and "paid as agreed." If everything is in order, it shouldn't hurt your credit score.
- Check Your Report: You can check your credit report for free from CIBIL to make sure the card shows as closed. If it looks like there’s an error, like the card still being active, that's a sign you need to take action.
- Contact Your Card Issuer: If your card shows as open or still active, call your credit card company and ask them to update your account status. They might not have reported the closure to the credit bureaus yet.
- Dispute with CIBIL: If the card issuer doesn't fix the issue, you can dispute it directly with CIBIL. They let you report mistakes online, and you just need to provide supporting documents to show the account was closed.
- Check Again: After a while, go back and check your credit report again to see if everything is updated.
Just remember, it’s better to have the account closed properly than to try and get it removed completely, especially if it was in good standing.
How Long Does a Closed Credit Card Stay on Your Credit
Report?
When you close a credit card, it doesn’t disappear from your credit report instantly. In India, CIBIL and other credit bureaus maintain closed accounts for seven to ten years, depending on whether the account was closed in good standing or had outstanding dues.
1. Closed accounts with no defaults: These remain on your report for 7–10 years and can positively impact your credit score.2. Closed accounts with defaults or late payments: These stay on your report for seven years from the date of the last delinquency, potentially lowering your credit score.
Even though a closed credit card remains on your report, it does not always negatively impact your credit score. If the account was closed with a good repayment history, it may continue to contribute positively to your overall credit profile.
How Do Closed Credit Cards Affect Your Credit Score?
Closing a credit card can impact your credit score in different ways:
Impact on Credit Utilization Ratio:Effect on Credit History Length:
Payment History Retention:
Can We Remove a Closed Credit Card from a Credit Report?
Yes, but only under certain conditions. If you believe the closed account is affecting your credit score unfairly, follow these steps:
A. Check Your Credit Report: Get a copy of your CIBIL report from the official website (www.cibil.com) and verify if the closed card appears.B. Identify Errors: If you see incorrect information (e.g., outstanding balance reported when the card is fully paid), raise a dispute with CIBIL.
C. File a Dispute with CIBIL:
- Visit the CIBIL website and log in.
- Select "Raise a Dispute" and enter details about the incorrect entry.
- Submit the request and wait for CIBIL to investigate.
D. Contact the Bank: If your report has not been updated, contact the bank that issued the credit card and request them to update the closure details with CIBIL.
E. Wait for Natural Removal: If there are no errors, the account will be removed automatically after 7–10 years.
It is important to check your credit report at least once a year to ensure that all information is accurate. If you notice any discrepancies, addressing them early can help prevent unnecessary credit score damage.
Is It True That After 7 Years Your Credit is Clear?
Yes, in most cases. Negative information such as late payments and defaults typically remain on your credit report for seven years. After this period, these records are automatically removed. However, good credit history may remain for up to ten years, helping maintain a strong credit profile.
While seven years is the general rule for negative information, some positive accounts with a good repayment history may stay on your report longer, continuing to benefit your credit score.
What Are the Consequences of Unpaid Credit Card Debt
After 7 Years?
If you have unpaid credit card debt, the consequences depend on how long the debt has been outstanding:
- After 180 Days: The account is classified as a Non-Performing Asset (NPA) and sent to collections.
- After 7 Years: The debt may no longer appear on your credit report, but banks can still legally pursue collection.
- Statute of Limitations: Some debts may become unenforceable after a specific period (varies by state in India), meaning banks can no longer sue you, but they can still request payment.
Even if a debt disappears from your credit report after seven years, you may still owe the amount. It is always best to settle any outstanding dues before reaching this point to avoid legal action or collection hassles.
My Experience with Closing an HDFC Regalia Credit Card
I took an HDFC Regalia Credit Card in 2017 with a ₹3 lakh limit and an annual fee of ₹2,500. Over the last seven years, it was extremely beneficial, offering excellent rewards and travel perks. However, in January 2024, I decided to close the card due to changing financial priorities.
Even after settling all dues and closing the card, it still appears on my CIBIL report. Initially, I was worried it might negatively impact my credit score. However, after checking my report, I realized that since the card was closed in good standing, it does not harm my score.
If you recently closed a credit card and it still appears on your credit report, don’t panic. Just ensure there are no errors and, if necessary, follow the dispute process to get it corrected.
Read Also : What to Be Careful About While Closing a Credit Card
Public FAQs
1. Can a closed credit card be removed from CIBIL immediately?
No, closed credit cards typically remain on your report for 7–10 years. However, if there is an error, you can raise a dispute with CIBIL to correct it.
2. How Does Closing a Credit Card Impact Your Credit History?
Not necessarily. Closing a credit card can reduce your credit limit and impact your credit utilization ratio, potentially lowering your score.
3. Can I reopen a closed credit card?
Some banks allow you to reopen a closed credit card within a certain period. Contact your bank to check if this option is available.
4. What if my closed credit card has an outstanding balance?
The balance must be paid before closing the account. If unpaid, it will negatively affect your credit score and remain on your report until resolved.
5. How often should I check my CIBIL report?
It’s recommended to check your credit report at least once every 6 months to ensure accuracy and avoid any errors.
Read also: Effective Ways to Boost Your Credit Score with Credit Cards
Final Thoughts
A closed credit card account will stay on your credit report for several years, depending on its status. If you need it removed sooner due to errors, raising a dispute with CIBIL is the best approach. However, if the account was closed in good standing, there is no urgent need to remove it, as it may still contribute positively to your credit history.
If you have faced similar issues, share your experience in the comments below! Let’s help each other navigate the complexities of credit management.
Read also: Your Simple Guide to Smart Credit Card Use
