Just paid off $10K from credit cards

[Anonymous]

I'm a new member to my fico and the forum so please excuse my ignorance on the subjects.  My credit score is at 723 but I owe too much money and have too many loans, so creditors dont want to grant me any more loans.  So I just decided to pay off $10K out of $20K that I owed to credit cards, I sold my car which eliminated a $15K auto loan, and sold my motorcycle which eliminated a $6K loan.  All within the last 2 weeks or so.

Can I and when will I see an increase in my credit score or will my score remain in the same place?

How long does it usually take for equifax to see paymants made to accounts such as my payments, and will this increase my score?

Thanks, Johny

[daisyduke]

Someone else can chime in, but utilization is a  key factor ...if utilization is high, your score will suffer. if it's lower, you will reap points! I am at 20% utlization on TU and i saw a big increase initially...

To answer your question about Equifax. I can only tell you...they are slow. they are so slow at updating...I'm sure they are the last bureau to report...all of my balance have significanly changed with EX and TU but nothing on EQ yet. Still waiting for EQ to pick up AU account...TU and EX picked it up 08-23...nothing yet. added a Nordstrom account, fast with inquiry but did not add the account yet. slowwwwwwwwww.

[Karatz]

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@daisyduke wrote:

Someone else can chime in, but utilization is a  key factor ...if utilization is high, your score will suffer. if it's lower, you will reap points! I am at 20% utlization on TU and i saw a big increase initially...

To answer your question about Equifax. I can only tell you...they are slow. they are so slow at updating...I'm sure they are the last bureau to report...all of my balance have significanly changed with EX and TU but nothing on EQ yet. Still waiting for EQ to pick up AU account...TU and EX picked it up 08-23...nothing yet. added a Nordstrom account, fast with inquiry but did not add the account yet. slowwwwwwwwww.

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Do you have any idea how slow? I PIF a cc that showed up on TransUnion as 0 last monday. Here it is 5 days later and still Equifax still shows the full balance.

[daisyduke]

Karatz, i wish i knew. my au account hit EX and TU almost within the same time period 08/23...EQ still has old balance reporting whereas EX and TU have updated, thus affecting my score...i guess they might be 45 day behind the other guys....seems that way to me. I pull real time EQ (goldwatch) and still have not updated past balances...still in July....i also pull real time ex (plus scores but they don't count)....

[Anonymous]

I guess it is a debt to income issue that you are running into. The loan amounts you mentioned don't seem all that serious.

You will gain points for paying off the credit card debt (due to utilization) but you may lose points for not having diverse accounts (installments)

[Karatz]

I called to dispute it so I guess it will get fixed in as much as only 30 days. I charged some on another card that won't have a due date till the statement cuts, but on that date, a nice chunk of my utilization will hit the CRA. Would be nice for that not to report for 45 days too. Just wondering if they report bad things quick and good things not so quick.

[daisyduke]

Karatz, just an fyi example....i'm getting to the of end paying down my ford lease installment. both TU and EX have now reported the balance of the loan as 790 but EQ still has the balance as 1185.(minus again the one payment)..ford told me they update with the bureaus at the same time but it's up to the bureau on how fast they are. I almost need to have an open loan before I get another loan, because if i lose it, it will affect the "mix" and I have no other installments on my CR...

what did you dispute with the bureau?

i sent in a fax with my bofa au account and provided them all the information, never made to my CR as of yet! I have no idea if bad gets reported first, but that inquiry from my new charge card was instant....never heard back of course. nothing....

[Uborrow-Upay]

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@Anonymous wrote:

I'm a new member to my fico and the forum so please excuse my ignorance on the subjects.  My credit score is at 723 but I owe too much money and have too many loans, so creditors dont want to grant me any more loans.  So I just decided to pay off $10K out of $20K that I owed to credit cards, I sold my car which eliminated a $15K auto loan, and sold my motorcycle which eliminated a $6K loan.  All within the last 2 weeks or so.

Can I and when will I see an increase in my credit score or will my score remain in the same place?

How long does it usually take for equifax to see paymants made to accounts such as my payments, and will this increase my score?

Thanks, Johny

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Welcome to the forums, JohnyCakes!

Congrats on paying down your debts!  As others have said, EQ is sometimes very slow to report, give it a full cycle before expecting to see your payoffs reflected in your report.

You should pick up points for cutting your utilization in half, but may lose a small number of points for eliminating installment debt, unless there is another installment loan on your report.  If your utilization is now, for example, 25% rather than 50%, your score should show a net increase, IMHO.

Two questions for you, though.  Is your 723 a FICO or a FAKO (such as a Vantage Score, or a Plus Score)?  Also, what other type of loan are you trying to obtain?  (I'll assume it's a mtg. loan and you're looking for the best rate).

Please let us know, and thanks for posting!

[Karatz]

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@daisyduke wrote:

Karatz, just an fyi example....i'm getting to the of end paying down my ford lease installment. both TU and EX have now reported the balance of the loan as 790 but EQ still has the balance as 1185.(minus again the one payment)..ford told me they update with the bureaus at the same time but it's up to the bureau on how fast they are. I almost need to have an open loan before I get another loan, because if i lose it, it will affect the "mix" and I have no other installments on my CR...

what did you dispute with the bureau?

i sent in a fax with my bofa au account and provided them all the information, never made to my CR as of yet! I have no idea if bad gets reported first, but that inquiry from my new charge card was instant....never heard back of course. nothing....

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I disputed the balance. I used 800-305-7868. Be prepared to have to say no to their product sales pitch three times when you finish. They just run off the script. Next time I'm going to tell them I already have their product and see if that gets rid of them faster.

MyFICO scorewatch posted my dispute the next day...shows that it works.

[haulingthescoreup]

I've had to dispute with the bureaus as "incorrect balance" in the past when a store card wouldn't update as paid to $0. I waited a while, though, as I don't want to get the "frivolous disputer" label put on me. Just an fyi to others thinking about this. Don't do it just to hurry up the natural timetable.

OP, I lost track of whether you got a specific answer on "how long", but generally credit cards update to the bureaus on their statement date (HSBC/ Orchard and US Bank use the last business day of the month), and then the bureaus take up to two weeks to get around to posting it. Unless you have a major, major deadline looming, like a mortgage app, just let it work it's way through. Tough, I know.

And you'll get points for paying down CC debt, but paying down installment debt doesn't do much. It's treated separately from revolving.

If you haven't already, please read Understanding Your FICO ® Score and Credit Scoring 101 (at least the first post.)

These will give you the background knowledge you need to understand what you read here on the forums.