Why Did My Good Credit Card Reports Come Off My Credit Report?

You may have paid off several loans with a perfect payment history, but the credit bureaus usually eventually purge positive information some time after the account is closed. Theoretically, an active account in good standing can stay on your report the rest of your life, however.

Identification

Positive credit information usually stays on your account for 10 years after you close an account without a missed payment or any other negative activity, according to Equifax. If the account has any derogatory information on it, such as a charge-off, settlement or missed payment, the bureaus purge the history after seven years.

Keeping an Account Active

You do not have to carry a balance on an account to keep it active and improve your credit. You only need the lender to report activity. This may require periodically charging a small amount on the credit card and paying it off before it incurs finance charges. If you do not use a card for several months -- usually between four and six months -- the FICO scoring model considers the account dormant and does not include it in calculating your score.

Credit Reporting Error

A credit reporting mistake made by your creditor or the credit reporting bureau could cause an active, positive account to disappear. For example, if someone has the same name as you, the creditor or bureau may accidentally report an account on the other party's credit file. If this happens, you can either alert the creditor to this error or send the bureaus proof that you are the account holder, such as a statement from the creditor.

Tip

Lenders may close a credit card account if you do not use it, because it costs money to maintain records of the account and send you a new card periodically. An account closed by a lender does not immediately hurt your score, but it lowers your overall credit limit and raises the percentage of the available limit you use. This percentage is called credit utilization, and a high credit utilization percentage can damage your credit score. Several credit cards closed by a lender could draw concern from future lenders.