With installment loans you are expected to paydown the balance per plan. Each month you have the loan the payment obligation is either met or not met. That is your payment history. Fico scores are designed to be a numerical representation of risk that a profile will incur a new 90+ day late on an open account. Paying off the loan has no bearing on risk.
If your loan payment history had a slew of lates, paying off the loan does not negate the poor credit management history. Likewise, if your loan payments were always ontime, paying off the loan won't void a history of responsible credit behavior.
Having a loan or incurring charges on credit cards are not negatives - that is the purpose of credit. Risk is determined and scored based on how the credit accounts are managed. For those with no revolving credit accounts or no installment loans, credit management can not be assessed based on history. That uncertainty translates to increased risk relative to someone with a positive payment history using that type of credit.
Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
