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Member
Posts: 15
Registered: ‎03-19-2009
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What is the average time-line that a balance DECREASE will positively affect your score?

Because of my shopping habit and various small issues with my car, my balances on my card have increased and in result decreased my FICO score by 51 points in a matter of 8 months 699 to 648!! I have not missed one payment and I plan to pay off all balances by the beginnging of the year.  Does it take longer or about the same time to increase a credit score than to decrease one? If so, what would you recommend to speed up the process. I'm hoping for a 700-720 by April, 2010. Thanks for the advice

Valued Contributor
Posts: 1,157
Registered: ‎05-21-2008
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Re: What is the average time-line that a balance DECREASE will positively affect your score?

There is only one way to speed up the process.  Pay the balances off quicker.  Utilization calculations are momentary, meaning it doesn't matter what your utilization on your credit cards was last month.  If you run up $10,000 in CC debt, but a couple months later pay it all off, your score will be the same as if you never had the debt to begin with, assuming nobody messes with your limits and you pay on time.

 

So as soon as you pay off the balances, give plus or minus 30 days for all your balances to update on your credit reports, and your score will be back where it was, assuming no additional changes to your file.


Starting Score: EQ: 665 - TU: 687
Current Score: EQ: 749 - TU: ---
Goal Score: EQ: 760 - TU: 760


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Frequent Contributor
Posts: 488
Registered: ‎04-09-2008
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Re: What is the average time-line that a balance DECREASE will positively affect your score?

Your FICO score is a snapshot of your credit history at that time:so all things being equal if the utilization getting high is what dropped your score- getting the utilization down to <7% will immeadiately increase your score (as soon as it reports), You may even see a small bump for increased age. I think if you were at 699 and all things are equal you will see 700+ when you get that utilization down. No inquiries or new credit in the meantime, you will be fine.
Member
Posts: 15
Registered: ‎03-19-2009
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Re: What is the average time-line that a balance DECREASE will positively affect your score?

Great!!! Thanks! You really are SUPER CONTRIBUTERS.
Super Contributor
Posts: 5,703
Registered: ‎10-06-2007
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Re: What is the average time-line that a balance DECREASE will positively affect your score?

If you have the time, try also letting 0% report on all cards and see if that pushes your TU score to what you want it to be.  If 0% hurts both scores or you dont  like the score result, it is always easy to allow a balance to report.  a $1 charge will work just fine.
11/28/2014 FICO: EQ: 796 EX:788 TU:803
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