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If a debt is paid off and marked as $0, what happens to the credit file?

When a Tenant pays off the debt, their credit file will be updated to reflect that the debt has been paid.

As a debt is paid off, update the outstanding balance until it is $0, indicating the debt is fully paid. 

When a debt is marked as $0, this status is reported to the Credit Bureaus:

  • The account on the Tenant’s credit report will be marked as closed and in good standing
  • The tradeline or collection account may remain on the file for several years as a closed account, which can still impact the credit file, but future creditors will see there is no longer debt owed