Paid accounts are closed trade lines that have been fully settled and no longer carry an outstanding balance. While the financial obligation has ended, reporting them correctly—and for the appropriate amount of time—is essential for accurate consumer credit history and FCRA compliance.
Understanding Account Status Codes 13, 61–65
Each of these codes designates a specific type of paid or resolved account:
- 13 – Paid or closed account/zero balance
- 61 – Account paid in full, was a voluntary surrender
- 62 – Account paid in full, was a repossession
- 63 – Account paid in full, was a charge-off
- 64 – Account paid in full, was a foreclosure
- 65 – Account paid in full, was a deed-in-lieu of foreclosure
These codes describe how the account was settled and must be retained accurately during the reporting lifecycle.
How Long Should These Accounts Be Reported?
According to the FCRA, the duration depends on the account type and whether any delinquency or negative event occurred:
- Positive Paid Accounts (Status Code 13):
Can remain on the consumer’s credit report for up to 10 years from the Date Closed. - Negative Paid Accounts (Status Codes 61–65):
Should be removed 7 years from the Date of First Delinquency (DOFD) that led to the status.
The DOFD is the trigger date that starts the 7-year retention period for any negative item, even if it was later resolved or paid.
Best Practices for Furnishers
1. Preserve Payment History
Even if an account has been paid and closed, its monthly payment history must remain intact to provide accurate credit history.
2. Set Balance to Zero
The Balance Amount and Scheduled Monthly Payment Amount should be zero after payment in full.
3. Use Correct Date Fields
Include all the necessary date fields:
- Date Opened
- Date Closed
- Date of Last Payment
- DOFD (if applicable)
4. Avoid Premature Deletion
Do not remove paid positive accounts before the 10-year mark unless requested by the consumer. These accounts often benefit credit scores and reflect financial responsibility.
FCRA Compliance Requirements
The FCRA requires that reported information be:
- Accurate – Status codes and balances must reflect payment in full.
- Complete – Include all related fields and payment history.
- Timely – Ensure the account is removed only after the correct reporting period ends.
Impact on the Consumer’s Credit Report
✅ Positive Influence on Credit Score
Paid accounts in good standing improve a consumer’s credit profile.
✅ Historical Context for Lenders
Maintains the account’s legacy for underwriting and credit history review.
✅ No Additional Liability Reflected
Zero balances signal the account has been resolved, preventing confusion over active debts.
Conclusion
Properly reporting paid accounts, whether standard or resulting from a negative event, helps maintain FCRA compliance and ensures consumers receive fair credit treatment. Paid accounts—especially those with positive histories—should stay on the credit report for the appropriate time, giving consumers the credit they’ve earned.