Once a loan has been paid off it will sometimes be reported as "closed" by the credit bureaus we report to (Experian & Transunion). A "closed" status is the same as a "paid in full" status on a credit report, what ultimately impacts your credit the most will be whether or not the payments on the loan were made on time. Once you see the "closed" or "paid in full" status on your credit report, you've fulfilled your obligation to repay, and no further activity on the account is expected or required.
Possible reports to the bureaus with the intent of increasing your credit score, but the bureaus do not disclose how credit scores are calculated. If you believe that your credit report was impacted negatively by a reporting error, please file a dispute with Experian and Transunion. The bureaus offer this service without charge, and our team promptly reviews any disputes as quickly as possible.