topic Re: Paid Off High Interest CCs; iHow Long Until FICO Recovers? in Understanding FICO® Scoring

Paid Off High Interest CCs; iHow Long Until FICO Recovers?

Anonymous — Wed, 14 Aug 2019 17:57:51 GMT

As part of our divorce settlement, we took out a HELOC and pulled some cash out of the house I am keeping. There is still 60%+ equity left in a high growth, low COL area.

Immediately, I paid off all of my high interest ccs and paid over 50% of my 0% Discover.

Utilization was the the only negative holding down my scores. No lates, no collections, well aged.

How long before my FICO scores begin to reflect the drop in utilization %?

Thank you!

Re: Paid Off High Interest CCs; iHow Long Until FICO Recovers?

calyx — Wed, 14 Aug 2019 18:10:04 GMT

@Anonymous wrote:
As part of our divorce settlement, we took out a HELOC and pulled some cash out of the house I am keeping. There is still 60%+ equity left in a high growth, low COL area.

Immediately, I paid off all of my high interest ccs and paid over 50% of my 0% Discover.

Utilization was the the only negative holding down my scores. No lates, no collections, well aged.

How long before my FICO scores begin to reflect the drop in utilization %?

Thank you!

As soon as your cards report the reduced utilization to the CRAs. The beautiful part about the util% effect in FICO is that it's a snapshot and time and updates/changes with reporting.

Re: Paid Off High Interest CCs; iHow Long Until FICO Recovers?

Anonymous — Wed, 14 Aug 2019 18:41:46 GMT

Thank you.

Do you have an idea how long it generally takes for the cc companies to report to the CRAs?

It will be so good to have my scores back.

Yes, at least utilization is only temporary.

Re: Paid Off High Interest CCs; iHow Long Until FICO Recovers?

HeavenOhio — Wed, 14 Aug 2019 23:49:25 GMT

Most banks report the statement balance on or soon after the statement date.

Re: Paid Off High Interest CCs; iHow Long Until FICO Recovers?

Anonymous — Wed, 14 Aug 2019 23:51:18 GMT

@Anonymous wrote:

Do you have an idea how long it generally takes for the cc companies to report to the CRAs?

They report monthly, so no more than 30 days. Do you have access to any online CMS like Credit Karma or WalletHub? If so, you can look at the dates your cards last reported. The reporting date is typically the same every month, +/- a day or so. That being said, if you saw that 2 cards you just paid down last reported on the 21st and 25th of July, you'd expect your new balances to report on or about the 21st and 25th of August.