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Paid and Settled Accounts

A closed account may appear “paid in full” on your credit report, letting potential lenders know you have paid the creditor the full amount that was due. A closed account that is noted as “settled” on your report suggests that, while you paid something, it probably wasn’t the full amount you originally agreed to.

How Quickly Will a Paid-off, Closed Account Be Updated on Your Credit Report?

When you pay off an account, the amount of time that passes before your account is updated can depend on several factors, including:

  • When the creditor reports the new information to the credit reporting agency. A good rule of thumb is to allow 30-60 days before you expect to see the updated information.
  • Whether or not the account was closed in good standing. Accounts closed in good standing remain on your credit report for up to 10 years.

Negotiating a Settlement Amount on an Account in Good Standing

February 28, 2017

Dear Experian, My mother offered to pay off my private student loans. The account is in good standing, but I am negotiating to pay an amount less than the...

How Long Do Settled Accounts Stay on a Credit Report?

August 11, 2016

Dear Experian, I settled and closed a delinquent account almost five years ago and the creditor is still reporting. How can they do that if the account is closed?...

Updating an Account to Show “Paid in Full”

April 9, 2015

Dear Experian, I traded in a car and the dealership paid the remainder of the account balance. When will the account show on my credit report as paid in...

When Paid Accounts are Deleted from Your Credit Report

August 7, 2014

Dear Experian, How can an account I paid off and closed still be on my report? It has been there since 2008. - CBH

Settling Accounts Will Hurt Credit Scores

September 10, 2013

Dear Experian, I have an unsecured loan of $10,000 and the loan company has offered me a settlement of $5,000. It I take this settlement, will it affect my credit...

Settling a Debt Will Hurt Your Credit Score

December 7, 2011

Dear Experian, Does it hurt my credit score if I settle my account? - EWH

How Long It Takes for a $0 Balance to Show on Report

August 3, 2011

Dear Experian, How frequently is one's credit record updated? If I paid off an old debt and want my credit report to reflect a $0.00 balance, how long does it...