Myth: Paying off loans or closing credit cards cause their removal from your credit reports.

December 10, 2013

Fact: The credit reporting agencies do not remove accounts once they’ve been closed or paid off. In fact, there is no law requiring the credit reporting agencies to ever remove accounts that are in good standing. At this time, however, the credit reporting agencies choose to remove inactive or closed accounts 10 years after they’ve been closed. Additionally, while closed or paid off accounts are still on your credit reports they are still considered by credit scoring systems.

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