How Long to Keep Paid Credit Card Information

Given the fact that credit card accounts are revolving debt, an account can only truly be "paid" if the account has been closed. You want your credit card to report as a positive entry on your credit file, but in the event that your history is misreported, you must possess the documentation to prove otherwise. With the proper paperwork, you can easily dispute an incorrect credit notation and have it remedied.

The Facts

The credit bureaus maintain millions of credit profiles and receive thousands of reports every day. It is not uncommon for paid accounts to report as unpaid or positive accounts to report as negative. The credit bureaus cannot verify every report they receive. Because of this it is important that you monitor your credit file for inaccuracies and keep the documentation necessary to dispute any errors you find.

Documentation

Upon paying off a credit card, you should keep documentation that debt is satisfied. If you do not receive a final statement from your credit card company indicating that you no longer owe any money on the card, you can call and request one. Some companies do not issue final statements but will send a zero balance statement upon request. Ideally you should also keep copies of your credit card bills and the debits or canceled checks used to pay those bills for the past two years. In the event that your payment history is misreported, this will help you prove otherwise.

Time Frame

After an account is closed, it is no longer being updated each month. This makes the odds of mistakes happening next to nil. The average credit card company purges its records after two years. This is when activity on the account can occur. Occasionally a paid account will accidentally be sent to collections. Because of this, you should keep your paid credit card information for three years just to be safe.

Reporting Period

The Fair Credit Reporting Act regulates the reporting period for all debts. A credit card account that is reporting as a positive debt will remain on your credit file for 10 years. The account's payment history for the past two years will also appear on your credit file. This is why you should keep all credit card statements and payments for the previous two years. If a payment is reporting as late, that can hurt your score. Proper proof of a timely payment makes all the difference when filing a dispute.

Disputes

If you find an inaccuracy in the way your paid credit card account is reporting on your credit file, you have the option to file a dispute. Send a copy of your credit report, a statement of the error that is being reported and documentation to back up your claim to the credit bureau that is reporting the inaccuracy. The credit bureau has 30 days to investigate your claim and make a decision. After this period, you will be provided with an updated copy of your credit report if changes are made. Good documentation makes all the difference when disputing errors on your credit file.

References

• Fair Credit Reporting Act (Section 605)
• Fair Credit Reporting Act (Section 611)