another Q: paying off debts

[Anonymous]

I notice that 10% of a person's score is related to the variety of credit types they have. Does this mean if I pay down my mortgage or credit card completely, (I have only 1 cc and 1 mortgage), that my credit rating will actually FALL? We are thinking of paying off the mortgage (it's small and we are getting a chunk from selling something else), but it would seem odd that this responsible act would harm my report....Does the 10% represent ACTIVE credit or historical variety? Tracy

[Anonymous]

I don't know for sure, but from what I understand, closed accounts that ended in good standing remain on your credit report for at least ten years. So your credit report would still list your mortgage, it would simply list a balance of $0.

Reducing your outstanding debts will just about always improve your credit score (EXCEPT for collections and charge-offs; FICO gives you no credit for resolving those).