How long does it take for your credit score to go up after you pay off all debt? Will my credit be good again?

Answer 1

ruaclevermind is mistaken. If the account was never reported as late, it was not hurting your score. If it was not hurting your score, paying it off will not improve your score. Negative information can remain on your report for seven years even if you pay of the debt. A paid off account is better that a debt in default. Your credit will GRADUALLY improve even before the debt comes off your report. A current record of on time payments helps more then any old accounts.

Answer 2

If the debt never reported lates or derogatory info, and you just paid it off; yes you will have a better score; as soon as those companies report the debt as "paid" which usually happens every 45-90 days or so.


If the debt was bad debt, (in collections or past due) paying the debt off will help your score, however; removing the item in its entierty is more important.


If you need help with deleting negative items, try this company:

http://www.expert-credit-advice.com/credit_repair_service.htm

They did an outstanding job for me. But it took awhile. Be prepared to wait a few months or even longer, depending on the severity and number of the items on your reports.



You must also start building credit to out weigh some of the derogatory stuff.




You will have good credit if you pay off debt, remove negative items, build credit and dont incur too much new debt.


Good luck

Answer 3

It takes time for the paid account to post to your credit history. If you have a bad history of late payments and over the limit balances, then paying everything off will help your credit score. I would recommend keeping one credit card with a balance of 25% or less of the credit limit. Make sure to make the payments on time. You will be maintaining activity on your credit history that shows you are responsible. You do not want to have a stagnated credit report that shows you have not maintain anything. This is important when buying a car and getting a better interest rate.

Answer 4

It can take 30 - 90 days for the new balance of the debt to get reported, and the score would be based on that. Seven years from the date that your debt became delinquent, the adverse information will purge, and will be as if it never occurred.