5 points
It won’t, necessarily. They don’t want people who will pay off their debt, they don’t make money off of interest if you pay your debt off. They want people constantly in debt making monthly payments.
Source: I paid off lots of debt and my score plummeted.
3 points
*
Your score could have gone down because closing the account effected the length of your credit history, or because the credit mix (types of accounts) was changed, or because the account showed the entire loan amount as available credit which was removed when the account was closed. Yes they make money off of people who carry some balance but they track credit scores to attempt to predict whether a person will repay credit that is offered to them.
1 point