How long for FICO scores to update?

Anonymous · ‎12-17-2009

Hello,

My husband and I both recieved somewhat larger end-of-year bonuses than we anticipated and we used the extra cash flow to pay off our second mortgage and all of our credit cards. Prior to this, we owed approximately $13,000 on our second mortgage (originally $19,000) and $12,000 on credit cards. Our credit cards were approximately at 50% of their limits.

How quickly will our FICO scores actually improve with such a rapid pay down on loans/credit cards? Will it go up as soon as the information in our credit reports is updated, or will the residual high balances of the past year still bog it down?

Thanks!

MarineVietVet · ‎12-17-2009

@Anonymous wrote:
Hello,

My husband and I both recieved somewhat larger end-of-year bonuses than we anticipated and we used the extra cash flow to pay off our second mortgage and all of our credit cards. Prior to this, we owed approximately $13,000 on our second mortgage (originally $19,000) and $12,000 on credit cards. Our credit cards were approximately at 50% of their limits.

How quickly will our FICO scores actually improve with such a rapid pay down on loans/credit cards? Will it go up as soon as the information in our credit reports is updated, or will the residual high balances of the past year still bog it down?

Thanks!

Welcome to the forums.

And congratulations for the debt pay down. That's always a good feeling.

FICO has no memory. It is a snapshot of your financial situation as each score is being pulled. It doesn't care about last year or even yesterday if something has changed for today.

You should get an nice increase but exactly how much is probably impossible to say. Keep paying on time and keeping your usage low and it will only get better.

7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
"Hello my name is Sandy and I'm a recovering crediholic".

Anonymous · ‎12-18-2009

Thank you for the information! I'm still trying to make heads and tails of a lot of this. This forum has been a huge help! After re-reviewing my credit reports, I did find one issue.

Last year, when I applied for a private student loan through Citibank, the website was experiencing problems and I was unable to complete my application. I called their customer service and was given revised instructions. I then reapplied the next day for the loan.

My credit report is now showing two inquiries from Citibank for two sequential days.

What kind of impact would this have on my credit score and would it be worth pursuing with Citibank to get one of the inquiries removed?

Thanks,

Katie

MarineVietVet · ‎12-18-2009

@Anonymous wrote:
Thank you for the information! I'm still trying to make heads and tails of a lot of this. This forum has been a huge help! After re-reviewing my credit reports, I did find one issue.

Last year, when I applied for a private student loan through Citibank, the website was experiencing problems and I was unable to complete my application. I called their customer service and was given revised instructions. I then reapplied the next day for the loan.

My credit report is now showing two inquiries from Citibank for two sequential days.

What kind of impact would this have on my credit score and would it be worth pursuing with Citibank to get one of the inquiries removed?

Thanks,

Katie

Inquiries stay on your reports for two years but have no impact on scoring after one year. If these are you only inquiries I would not be concerned. If the two consecutive inquiries were a result of a computer error by Citi they might be willing to remove one. No harm in calling and asking.

Anonymous · ‎12-18-2009

That's good to hear. The inquiries are actually over a year old (12/15/08 and 12/16/08) and I have one other, also from Citibank, on 3/15/2008. I guess if they're all over a year old, it's probably not worth putting too much work into getting it removed.

MarineVietVet · ‎12-18-2009

@Anonymous wrote:
That's good to hear. The inquiries are actually over a year old (12/15/08 and 12/16/08) and I have one other, also from Citibank, on 3/15/2008. I guess if they're all over a year old, it's probably not worth putting too much work into getting it removed.

They're not affecting you at all. You are free and clear as far as inquiries.

Now go forth and prosper.