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

[Anonymous]

Thanks new world

[Anonymous]

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 ? 

[Anonymous]

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.

[Anonymous]

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 

[addaniels]

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 )

[fused]

---

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.

[Anonymous]

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. 

[Anonymous]

Thank you. I found your advice extremely helpful.