 TITLE: How Long After You Pay Off Debt Does Your Credit Improve? CONTENT: Installment Loans\n-----------------\nInstallment loans, such as mortgages or auto loans, have a set term with fixed monthly payments. Unlike a revolving credit account, once the borrower makes the final monthly payment, the account is closed. Another contrast to revolving credit is that zeroing out your balance on an installment loan may not have much of a benefit to your credit—in fact, it may actually cause your scores to drop.\nFor some, paying off a loan won't affect credit scores much at all. For others, it may cause a temporary drop. This can happen if it was your only installment loan, since having a mix of different types of accounts helps your score, and losing your one installment account can bring it down slightly. Additionally, if it was your only account with a low balance, paying it off can hurt your score if the other active accounts are a long way from being paid off.\nFortunately, any dips are usually temporary. Once the installment loan is paid off, your credit score should go back to where it was within one or two months. If your score doesn't shoot up after paying off the loan, don't despair: The paid-off loan will remain on your credit report for up to 10 years after the account closes. If your account was in good standing, having this positive history on your credit file can help your credit score in the long run. END