Does Paid Mean Closed on a Credit Report?

A paid or closed account it usually a good thing on your credit report, or at least neutral. Whether you have a "paid in full" or "closed" status on your account makes little difference, according to credit reporting agency, Experian.

Identification

The only difference between paid and closed on a credit report is that they signify a different type of account,. "Paid" accounts are installments, such as loans, while "closed" accounts refer to revolving accounts, like credit cards.

Significance

A paid account means you have given back all the money you borrowed from a lender, according to Experian. A closed account is inactive, but has no outstanding balance.

Effects

Having either a paid or a closed account is a good thing, as long as you were never late on a payment, according to Experian. Both of these stay on your report for 10 years -- three years longer than any negative information.