Reply
Member
mailwoman
Posts: 15
Registered: ‎03-19-2009

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
thrasher865
Posts: 1,163
Registered: ‎05-21-2008

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


Take the FICO Fitness Challenge
Frequent Contributor
moondog7324
Posts: 488
Registered: ‎04-09-2008

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
mailwoman
Posts: 15
Registered: ‎03-19-2009

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
marty56
Posts: 5,679
Registered: ‎10-06-2007

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.
09/12/2013 FICO: EQ: 772 EX:813 TU:752

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+