Your credit scores will not be penalized for paying off a car loan or mortgage early. Assuming you paid your car loan or mortgage on time, every time, it will almost certainly reflect positively on your credit report.
Once you pay off your car or home loan, your credit report will be updated to show a status of "paid." Allow a full billing cycle or two for the account to be updated to show a "paid" status. Lenders update the status at the end of each billing cycle, so it could take as much as a month or a bit more before your credit report is updated.
Anytime you make a significant change to your credit history, such as paying off a loan, you may at first notice a slight drop in scores. However, the drop is usually small and short term. If there are no other negative issues in your credit history, your scores will likely come back up after a month or two, after your credit history stabilizes.
If you have made your car payments or mortgage as agreed and the loans do not show any late payments, that loan will stay on your credit report for 10 years from the date it was paid. Positive history stays on longer than negative history so it will help you build a strong credit history.
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Scoped on: 5/29/2018
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