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After someone dies, their credit file will be marked as "deceased" and will eventually be deleted entirely. The process doesn't happen right away, however, so it's a good idea to report the death of a loved one to the credit bureaus to minimize the risk of fraud.
Here's what you need to know about the process and steps you can take to accelerate it and protect your loved one's identity.
What Happens to Your Credit Report When You Die?
When a credit bureau receives a notification that you've died, it'll flag your credit file with an indicator that you're deceased. After seven years, the credit bureaus will delete all credit accounts showing the deceased notation, at which point your report will no longer exist.
This process, including the seven-year delay for deleting your credit file, helps to reduce fraud. If your credit file were deleted immediately and someone applied for credit in your name, a credit check wouldn't reveal any information.
With no way of knowing that the applicant is trying to commit identity theft, the lender might issue the thief credit in your name. With a deceased indicator, however, lenders will be alerted of the attempted fraud so they can take appropriate measures.
How Credit Bureaus Are Notified of Death
There are a few different ways the credit bureaus may be notified of your death.
- By lenders: When you pass away, your spouse or the executor of your estate should alert your creditors of your death. The next time the creditor updates your accounts with the credit bureaus, they will also report that you are deceased. If you have joint accounts with your spouse, it's important that your spouse notify the creditor that only one account holder has died. Otherwise, your spouse may be mistakenly reported as deceased.
- By the Social Security Administration (SSA): The SSA periodically sends a list of the newly deceased to the major consumer credit reporting agencies. Typically, the funeral home will report your death to the SSA. Your spouse or estate executor can also choose to notify the SSA themselves by calling 800-772-1213 or going to the local SSA office in person.
- By your spouse or estate executor: Your spouse or your estate's executor may want to notify the credit bureaus of your death themselves. This can be faster than waiting for the SSA or lenders to do it.
How to Report a Death to the Credit Bureaus
The sooner your death is reported to the credit bureaus, the sooner they can flag your credit report. Rather than waiting for the credit bureau to receive notice from the SSA or be notified when creditors send their account updates, your family may want to report the death to credit bureaus themselves. Here's how they can go about it.
1. Understand Who Can Report a Death
Only your spouse or another person with legal authority, such as the executor of your estate, can notify credit bureaus of your death.
2. Gather Information
The credit bureaus will need a certified copy of your death certificate. Anyone who isn't your spouse will also need to provide documentation showing that they're legally authorized to act on your behalf.
For example, a copy of a legal document with a court seal showing that they are the executor of your estate will do.
3. Submit the Documents to a Credit Bureau
When one credit bureau is notified of a death, they will notify the others, so there's no need to alert all three. The three national consumer credit bureaus are Experian, TransUnion and Equifax.
To report a death to Experian, mail a copy of the death certificate to Experian's Consumer Assistance Center, P.O. Box 4500, Allen, TX 75013, or upload it online.
4. Request a Copy of the Deceased's Credit Reports
In addition to notifying the credit reporting agencies of your death, it's a good idea for your family to request a copy of your credit report from each of the three credit reporting agencies.
Not all creditors report to all three of the credit bureaus, so pulling all three reports will ensure that your loved ones have a full list of accounts, along with contact information for each creditor, so they can notify them of your death.
Who Is Responsible for Debt When Someone Dies?
After you die, any debts you owe are typically paid from your estate—a term that simply refers to all of the assets you owned when you died.
If you had a will, the executor you named would use the money from your estate to pay any debts you left behind. If you die without a will, a judge will make decisions about how your debts will be paid and will select an administrator to execute those decisions.
However, there are situations where someone else may become responsible for your debt when you pass away. Here are just a handful of examples:
- You had a joint account. Any debt you held jointly with your spouse will become their responsibility. This commonly includes mortgages, auto loans and lines of credit. Your spouse is also responsible for paying the balance on any joint credit card accounts, regardless of who incurred the charges.
- You had a cosigner. Anybody who cosigned on a loan, credit card or other debt for you becomes responsible for that debt if you die.
- You had a home equity loan. If you had an outstanding home equity loan on a house that you left to your spouse or another heir, they would be responsible for repaying the loan after you die.
There may also be other exceptions if you live in a community property state. Currently, there are nine such states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. You may also be subject to community property laws in Alaska if you've signed a special agreement with your spouse.
Regardless of your state of residence, your heirs should consult an attorney with experience in estate law or check with your state attorney general's office to determine their obligations.
What Debts Are Forgiven at Death?
Most debts aren't eligible for forgiveness when you pass away. However, there are some exceptions.
Federal student loan debt is the only type of debt that will be forgiven without stipulation. Even if you took out parent PLUS loans, the debt will be forgiven if the child for which you took out the debt passes away. Some private student lenders may also offer forgiveness upon death, but it's not guaranteed.
If you have other unsecured debts and your estate doesn't have sufficient assets to cover what you owed, the remainder will be discharged. This can also occur if you live in a state that requires estates to pay survivors first.
The Bottom Line
Even after you're gone, your credit file continues to serve an important purpose. By flagging your file with a deceased indicator, credit bureaus can help minimize the threat of identity fraud, saving your family from further grief and loss.
In the meantime, it's important to take stock of your credit file and understand the possible implications for your loved ones if you pass away. With Experian, you can get free access to your FICO® Score☉ and Experian credit report, making it easy to keep track of your credit file and address potential implications.