Not sure about that, but what I do know is that once an account is paid off, it closes and mostly no longer factors in. The fact that you paid it off in full doesn’t matter more than whether you made all your payments on time. An account suddenly closing because it’s paid will affect at least 3 factors of your score:
average age of accounts could go up or down
Credit utilization will go up, as the part you had paid off before the account closing counted as “available credit” for some types of debt
Credit mix: having a variety of types of credit accounts helps your score. If your only account of that type just closed, it will bring your score down
Number of accounts also matters, and there is a sweet spot for that, but that’s only like 5% of your score
These factors all have different weights and timescales, your score will typically go back to the level it was at before within a few months if nothing else changes. What matters the most is having a long history of on-time payments. The shitty thing is that any missed payment hurts 10x more and will stay on your report for ages. This is all for the US system only, which should be obvious if you’re reading this and not American.
Not sure about that, but what I do know is that once an account is paid off, it closes and mostly no longer factors in. The fact that you paid it off in full doesn’t matter more than whether you made all your payments on time. An account suddenly closing because it’s paid will affect at least 3 factors of your score:
These factors all have different weights and timescales, your score will typically go back to the level it was at before within a few months if nothing else changes. What matters the most is having a long history of on-time payments. The shitty thing is that any missed payment hurts 10x more and will stay on your report for ages. This is all for the US system only, which should be obvious if you’re reading this and not American.