topic Just remember that in borrowing against your home, you ar... in General Credit Topics

How Long Does It Take For your Score To Change???

Anonymous — Sun, 11 Mar 2007 20:49:11 GMT

I recently paid off 80% of my credit card balances over three weeks ago and I see no updates. I have requested balance letters from all credit card companies because I may need to do a rapid rescore because I need to refinance my mortgage and wanted to get the best credit score I could get. Why when I use my credit cards or increase the balances, this information is instantly updated and when I pay them down I don't see the updates. What should I do??

I understand as I had the same question. Not knowig how...

Anonymous — Mon, 12 Mar 2007 11:46:04 GMT

I understand as I had the same question. Not knowig how the FICO scoring model works in detail, it would be hard to answer. One thing is that you've done this in the past three weeks. It will depend largely on when your creditors report you new balances. If you paid them after the statement date, you may need to wait a full cycle for them to update again. You can always pull a credit score to get some idea of exactly when your creditors repoort to the bureaus. That way you will know how long you have to wait for each. I used this method recently with a larg BT that ate up 90% on one card. I made the largest part of the payment beforetheir reporting date and a minimum agfter just to make sure I didn't get dinged on a max out for one card

My loan consultant told me to call my creditors next week...

Anonymous — Thu, 15 Mar 2007 20:52:03 GMT

My loan consultant told me to call my creditors next week to make sure that they report to the credit reporting agencies. I paid off my balances at the beginning of the month. I don't know if calling them will work, but we'll find out!

This is how I figured my dates out

Anonymous — Fri, 16 Mar 2007 14:03:51 GMT

From my personal experience, what I do is I called and asked the company when they report. One told me on the last Sat of every month. But what I found to be accurate, is I hit the details button on the account reference on truecredit, and it will tell you the exact date they reported it. That will usually give you a 2 day range of when you can expect them to update your report. One of my cards report on the last Sat of the month, anf another updateds on the 15 of the month.

Why balance increases report faster than paying down?

antredd67 — Sat, 24 Mar 2007 22:09:16 GMT

You ask a very good question. I noticed that when I charged anything, I would get an alert too. But it could be in an age of identify theft, myFico wants to alert us when balances go up faster in case someone has stolen our credit card or number and trying to run up our credit.

One would think that as soon as you pay down you balance it should be reported just as fast. AMEX is notorious for reporting late. You would have to know your closing statement dates and when your creditor reports to the CBs in order to know when it would be the best time to pay down balances to see your score increase.

How fast does your score change? Well, if you do anything...

Anonymous — Sun, 25 Mar 2007 07:47:45 GMT

How fast does your score change? Well, if you do anything wrong, it will drop like a stone. If your score is low and you try to do right things to recover it...well, you might as well just wait for the Sun to move off the main sequence, swell into a red giant, and fry the credit reporting system along with the rest of the planet. That will happen faster than your FICO improving (and it's much more fun to watch too!).

Keep paying bills on time

antredd67 — Sun, 25 Mar 2007 19:05:43 GMT

I have noticed that when I am not charging anything on my credit cards, and I am paying them on time my score goes up each month. I love credit line increases too because that usually bumps me up 10-15 points. Ask for credit line increases to see what will happen, and dont charge anything on that card when you get your line increase.

I've paid down balances on my BofA card each month, yet m...

Anonymous — Sun, 25 Mar 2007 19:13:48 GMT

I've paid down balances on my BofA card each month, yet my FICO hasn't changed (at least from the balance declines) since December.

Really, I'm starting to seriously question whether anything good you do for FICO EVER gets reported.

laon pay offs

Anonymous — Wed, 28 Mar 2007 07:03:08 GMT

I am in the process of refying my home to payoff debts and compelting some remodeling projects once these loans are paid should I put some type of alert on my credit to controll access and will these controls limit my purchsing on credit in the future...

Just remember that in borrowing against your home, you ar...

Anonymous — Wed, 28 Mar 2007 07:37:25 GMT

@Anonymous wrote:
I am in the process of refying my home to payoff debts and compelting some remodeling projects once these loans are paid should I put some type of alert on my credit to controll access and will these controls limit my purchsing on credit in the future...

Just remember that in borrowing against your home, you are replacing unsecured debt with debt that is secured by your home. This means that, if an event occurs that leaves you unable to repay, you could lose your home. I'm not saying don't do it, but be sure your eyes are open...

Assuming you do repay the loans, I don't see where any "controls" are necessary other than self-control. Keep your balances on any lines of credit and credit cards low, preferably just high enough that you have a bill to pay each month. Use credit cards to fortify and improve your credit rating, never for credit.

Re: Just remember that in borrowing against your home, you ar...

Anonymous — Fri, 20 Apr 2007 03:05:04 GMT

Thanks new world

Re: Just remember that in borrowing against your home, you ar...

Anonymous — Fri, 20 Apr 2007 03:07:57 GMT

Thanks new world

We just signed on the dotted line for a debt consolidation but I am still concerned how long it will take for the Fico to get better. I have kept many of the accounts opened because we have had them along time. But if I pay these accounts prior to their reporting to the CB can I expect a jump in the FICO in the next month or two ?

Re: Just remember that in borrowing against your home, you ar...

Anonymous — Mon, 23 Apr 2007 01:12:25 GMT

If you are doing a mass payoff of your debts, you should follow these basic rules:

The number one thing that can affect your report positively is length of credit history. This is important to know whan you are paying off mass items. Although the length of time an account has been open is important, the length of positive payment history is the most important.

If you are paying off items and intend to keep them open, then only pay down 80%, and moving forward, make the minimum payment every month, and maybe charge the same amount as your minimum payment every month on the cards to keep the balance between 15-20% at all times.

If you are paying off cards, and are closing them, then pay off the card(s) that you have the shortest payment history with, not the highest interest. As your credit score improves and your payment history lengthens, interest rates are more negotiable, but payment history length is not. In addition, only close 1 or 2 cards per month to suffer the least impact on your score. If you need for your score to increase significantly within a month or two, then follow the instructions for keeping the account open, and then start closing them after 3 months.

One last note. If you have a card that you have not had a perfect payment history with for the last 24 months, leave this card open. Continue to pay the minimum every month until your last bad payment drops off the 24 month cycle. When you do close it, it will stay on your credit report for many years to come, and it will only report the last 24 months that the account was open until it drops off.

Improving your credit is a dance. You have to do the steps in the correct order, and with patience for it all to work out in the end.

Great tip about 24 month visibility..

Anonymous — Mon, 18 Jun 2007 16:16:47 GMT

I applied for a department store account during the holidays (30% additional discount on sale items), while travelling for 2 weeks, and learned via u.s. mail upon my return that I already had an old account from 6 yr.s prior, but instead of re-activating it, they closed it down and opened the new one. My outstanding was never over $50 but with multiple account numbers, multiple notification mailings and multiple statements, that first payment showed up as 30-days late. I planned to just close it, since I carry no balance, but I can see the wisdom in your advice. Thank you for clarity! Kim

Re: How Long Does It Take For your Score To Change???

addaniels — Thu, 10 Jan 2008 22:08:24 GMT

Hello - I have the same question for the same reason - we are trying to refinance a mortgage as well in a short period of time. We were advised to pay off some credit cards and to close some of those accounts since we had way too many credit card accounts open. Is there a downside to closing credit accounts? I have heard both sides and not sure which is best regarding increasing a credit score Thanks! a newbie couple Art and Denise )

Re: How Long Does It Take For your Score To Change???

fused — Fri, 11 Jan 2008 01:24:20 GMT

addaniels wrote:
Hello - I have the same question for the same reason - we are trying to refinance a mortgage as well in a short period of time. We were advised to pay off some credit cards and to close some of those accounts since we had way too many credit card accounts open. Is there a downside to closing credit accounts? I have heard both sides and not sure which is best regarding increasing a credit score Thanks! a newbie couple Art and Denise )

As far as I'm concerned, there is no such thing as too much available credit so long as you manage it well. As for the lenders who asked you to close some accounts, tell em to fly a kite and go to another lender. If for some reason you must close some CCs, please read the link in my sig line, closing credit cards.

Re: How Long Does It Take For your Score To Change???

Anonymous — Fri, 11 Jan 2008 22:20:33 GMT

In October I noticed my scores went down alot. I was told it was because I had opened too many credit accounts in a short time. I immediately paid off all the credit cards and a car. Some of my creditors updated the balance within the next month, but I had to call others. In paying off the accounts it did nothing for my score. I have called FICO to ask why my score hasn't gone up due to the $0 balances on my accounts,they did'nt know and I was told it takes time.

Re: Just remember that in borrowing against your home, you ar...

Anonymous — Tue, 20 Apr 2010 12:10:25 GMT

Thank you. I found your advice extremely helpful.

Re: Keep paying bills on time

fused — Sun, 29 Aug 2010 16:08:54 GMT

Moved spring12's post to rebuilding credit