Do closed accounts from the past negatively impact my credit score? Should I focus on removing them?

Closed accounts from the past can indeed have an impact on your credit score, but whether it’s negative or positive depends on the circumstances. If you closed the accounts, paid off any outstanding balances, and they were in good standing, they generally won’t harm your credit scores. In fact, they may even help by increasing your average account age, especially if they have been open for a long time.

However, if the creditor closed the account due to credit or payment issues, then it becomes derogatory and can have a negative impact on your credit score. In such cases, it’s important to take action to address these derogatory accounts.

While it’s always a good idea to review your credit reports regularly, focusing solely on removing closed accounts may not be the most effective strategy for improving your credit score. Instead, consider taking a comprehensive approach to credit repair and building credit. This may involve addressing any derogatory accounts, but also implementing other strategies such as making timely payments, keeping credit utilization low, and diversifying your credit portfolio.

If you’re looking for a step-by-step guide and actionable strategies to improve your credit, I recommend joining the Credit Secrets program. It provides valuable insights and tools to help you navigate the credit score system and achieve your financial goals. Take charge of your credit today and start your journey towards financial freedom.