I am buying a house (closing in two months) and have paid off all my debt within the last two month's and I still see the balances on the credit bureau. How long does it take for my balances to show and my score improve?. Seems like it takes forever.
Generally creditors update balances and other similar inf...
Generally creditors update balances and other similar information monthly. Typically this is around the closing date of the "cycle"; however, this varies. Your score changes when the information on the report does.
Finally note some creditors update may not be the most current. Particular example would be AMEX - they're generally 1-3 months behind.
Ask your mortgage lender or broker if they participate in...
Ask your mortgage lender or broker if they participate in a Rapid Rescore program. You can submit documentation of paydowns, and your bureau scores can be recalculated. Note that it does cost, so you only want to do it in cases where it will affect your score.
Thank you both so much.. Yesterday I bougth the three-credits-in-one and the scores for Equifax were lower than the same bureau on MyFico. This worried me since I have paid off all my debt withing the last 2 months and expected the score to increase, not go the other way. The balances show paid off. How can it be that the score went down?.
Were these all revolving credit or did you have a mix of...
Were these all revolving credit or did you have a mix of installment loans? Sometimes closing installment loans hurt due to mix of credit, I have the same issue. You didn't clsoe any revolving accoutns did you? If so it may have skewed your utilization.
Revolving Utilization and Length of Credit History
A couple of things to keep in mind about revolving utilization and closing accounts:
1. While the lower the revolving utilization percentage the better, it's actually better to have a very small balance (1% or so of the total limits) than zero. So it's possible to go from a very low percentage to zero percent and see a slight drop in score.
2. Closing an account will not cause it to be excluded from calculations that look at length of credit history or have any kind of immediate negative impact to your length of credit history. As long as an account appears on the credit report - whether open or closed - you continue to get the full benefit of it's length of credit history. The only downside to closing an account, in terms of length of credit history calculations, is that closing an account will cause the account to be removed from your credit report sooner (typically 10 years from closing date) than if you leave it open, which then could negatively affect your length of credit history when it comes off of your report years down the road.
Formerly consumer affairs manager, media spokesman and myFICO Forums community manager at FICO, I'm now freelance writing for CreditCards.com and my own site, SpeakingOfCredit.com.