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How long after paying down cards will score go up?

Regular Contributor

How long after paying down cards will score go up?

Hi there. My husband and I have several credit cards (mastercard and store cards) that are all close to the limit.  I'd like to pay them all off when we get our tax refund in order to reduce the negative hit to our credit reports due to utilization, and then make a concerted effort to keep the utilization low from now on.  My question is how long after paying them down will we see a score increase?  Thanks for the help!

Message 1 of 17
16 REPLIES
Frequent Contributor

Re: How long after paying down cards will score go up?

It usually happens when the credit card company reports your new balance.

 

I'd say that normally happens within a few days of your statement being processed.

 

For example, my statement date on my AmEx was 1/4, and I let $400 report as the ending balance for the billing period.

 

That dropped my score on the 7th


Starting Score: 703
Current Score: EQ 820 4/11/16
Goal Score: 800


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Message 2 of 17
Valued Contributor

Re: How long after paying down cards will score go up?

takes about a month

Message 3 of 17
Frequent Contributor

Re: How long after paying down cards will score go up?

It varies. Credit Card companies "Normally" post an update after each statement cuts. I say Normally, because I caught my HSBC RZ MC twice where they waited a month before posting and then they posted 2 months in one....so if today is 20th and your statement cuts every 25th you should see it posted by the 1st by all CRAs....usually I see EXP and EQ first and then TU.. if your statement cuts on the 18th...then yeah you have to wait a whole month and then some...and hopefully they report it every month which they usually do. Like I sad I had it happened where they would skip a month and then report it next statement for both previous month and new month.

NFCU Visa Sig $30k / Amex Blue Cash $25.5k / Fidelity Amex $25k / Chase Freedom $14.5k / Citi Double Cash $5k / Capital One Quicksilver Visa Sig $5k / Citi Best Buy MC $3K / Barclay Rewards MC $2.95k / BOA - BBR $2.5k / SY Lowes $15k / SY Amazon $6k / Target RedCard - $300
Message 4 of 17
Established Contributor

Re: How long after paying down cards will score go up?

I say about two months for the CCCs to report the lowered balance to the credit bureau and it to be accurately reflected on all credit reports.


Starting Score: 760
Current Score: 716 Equifax 754 TU 736 Experian
Goal Score: 760
Message 5 of 17
Senior Contributor

Re: How long after paying down cards will score go up?


goodygoody wrote:

Hi there. My husband and I have several credit cards (mastercard and store cards) that are all close to the limit.  I'd like to pay them all off when we get our tax refund in order to reduce the negative hit to our credit reports due to utilization, and then make a concerted effort to keep the utilization low from now on.  My question is how long after paying them down will we see a score increase?  Thanks for the help!


You can check with your CCCs. Most of them will report your updated (paid) balance on the statement date. I had one tell me (can't recall who) that they report everyone's balance on the same day every month, but that is unusual.

 

Depending on the CCC and CRA, it should show up on your CR a few days after the statement date. The score should change when your CR changes. I usually get alerts of score changes the same day as alerts notifying me that my balance has changed.

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*
EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Message 6 of 17
Mega Contributor

Re: How long after paying down cards will score go up?


goodygoody wrote:

Hi there. My husband and I have several credit cards (mastercard and store cards) that are all close to the limit.  I'd like to pay them all off when we get our tax refund in order to reduce the negative hit to our credit reports due to utilization, and then make a concerted effort to keep the utilization low from now on.  My question is how long after paying them down will we see a score increase?  Thanks for the help!


You should see the increases in score as the creitors report your updated balances to the bureaus.




EQ FICO 548 3/3/16
Message 7 of 17
Regular Contributor

Re: How long after paying down cards will score go up?

Thank you all!  I was worrying that it would be 6 months or something...  Smiley Happy

Message 8 of 17
Mega Contributor

Re: How long after paying down cards will score go up?


goodygoody wrote:

Thank you all!  I was worrying that it would be 6 months or something...  Smiley Happy


Nope, just seen a 22 point increase this morning for paying down debt, it is very awesome!!!




EQ FICO 548 3/3/16
Message 9 of 17
Moderator Emerita

Re: How long after paying down cards will score go up?

As long as you have the money available to do it, paying off your revolving debt is the area over which consumers have the most control, and it's the fastest way to improve your scores. You just have to pay, wait for each account to update, and wait for the new balance to be posted on your reports.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 10 of 17