WHEN TO PAY OFF AN ACCOUNT BALANCE

Paying off a loan may have a negative effect. Often lenders require an applicant to have at least 3 open, active accounts for 24 months or longer. If the loan is paid off it doesn’t count as one of the 3 accounts. However, if you pay off a loan, your credit history is updated to reflect that and stays on your report for 10 years. Negative information stays on your report for 7 years.