wrote:
I have a very good credit score of between 760 and 787 depending on the type looked out. Our only negative is the amount of credit being utilized. Our overall credit card utilization was 43% and we had 1 card that was at 80%. A week ago I paid a substantial amount on the credit cards, paying 1 off entirely and bringing the other 3 to under 30% utilization. How long will this take to hit our credit score? Will it bring it up? We are needing to trade off our car off soon, but I don't know if we are okay to go ahead and apply for a loan at our credit union now or if we should wait a couple of weeks. We need to lowest possible interest rate.
If you need the lowest possible rate, then don't apply until those updated balances are reported. Score isn't everything when underwriting a loan. They consider your income, debt obligations, risk factor, etc. Just having those high balances reported can affect your interest rate.
As far as when those updated balances will report, that is up to each lender, but generally a few days after your statement closes. Some lenders like Chase will report immediately if you pay your balances to $0.
