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Paid Auto Loan Remains on Credit Report

Dear Experian,

When checking my credit report, I noticed that my old auto loan was still on the report. I had received a letter from them months ago saying the account was paid in full. How do I go about disputing this?

– IMA

Dear IMA,

When you pay off a loan, the lender contacts Experian to have the account updated to show that it is paid in full, and therefore closed. However, paying off an account does not remove it from your credit report. Paid, closed accounts remain on the credit report for 10 years from the paid date if they have no negative payment history.

Experian retains positive account history longer than negative account information. Doing so gives you credit for making all payments on time and can help you reestablish a positive credit history if you had any financial challenges.

If the account had late payments prior to being paid off, it will be deleted seven years from the original delinquency date. The original delinquency date is the date the account first became late and after which was never brought current. You can check the details on your credit report for free from Experian at any time.

Thanks for asking.
The “Ask Experian” team