How Long?

[GovtGal]

I have about $6,000 in credit card debt but I just received a payment from a class action lawsuit that will wipe this out.  The check is on hold with my bank (because of the large amount) until the 12th but at that time I plan on paying off all my credit card debt.

My question is this:  How long will it take for that to be reflected on my FICO score?  My FICO is in the high 600s and according to the FICO simulator, this should put me over 720 which is where I want to be.

[FretlessMayhem]

Hi GovtGal, welcome to the forums! Also, congrats on the settlement!

This will be reflected on your CRs when the lenders update 0 balances on your accounts. When this occurs varies by lender, but, for the most part, most lenders tend to update your balances around the time of the statement cutting. So, make sure you PIF your accounts to 0 BEFORE the statement cuts. That way they will report the 0 balance to the CRAs. 

[GovtGal]

Thank you.  That helps a lot.

[oracles]

hi govtgal and welcome to the forums

Also congrats on the settlement

Fretless gave great advice. just one thing to add

In order to maximize fico points, i would let one credit card report a small balance 1-5%util and then pay it off by the due date.

This will give you the most points.

If you have all your credit cards reporting 0 balance, you will not receive all possible points due to fico thinking you are not using credit.

Hope this helps and keep us updated