How soon does your credit score changes after you pay down or pay off your credit cards?

Answer 1

That depends on how soon the company you paid updates to the credit reporting agencies. The big 3 update files daily I believe.

Answer 2

Your score of 416 means you are an at- risk- borrower. 7 cc were charged off 2 years ago. The remainder of the non paid debt can remain on the credit bureaus' reports for 5 more years. It's true that by making payments on charged off accounts, you can end up owing the original amount plus interest and maybe even penalties. By doing this, the card companies would record your payments as late. I can't see how that would help your FICO score. If you filed bankruptcy, no lender will sell you a mortgage at this point. You need to build a reliable credit history. That means paying all debts on time. Do't make any late payments. Cut up any remaining credit cards. Call a lawyer for help with your dilemma.

Answer 3

This is a very good question. The honest answer is that there is no set amount of time. As a previous poster mentioned, it depends on how long it takes for the information to be reported to the credit reporting agencies. This can be anywhere from 24 hours to six months to never. There is no law, rule or regulation in any state of the union that requires any information ever be reported about you to the credit bureaus. So if the credit card company doesn't want to report that you have paid, they don't have to do so. Of course if they don't report that you have paid, hopefully they also haven't reported any other information on you either.

Also, there is no law anywhere in the US that states that information reported to the credit reporting agencies HAS to be maintained for seven minutes, let alone seven years. The Fair Credit Reporting Act states that the information CAN be kept for up to seven years, but does not make it a requirement. Lenders and Credit Bureaus don't want you to know this because it harms their business if you are an educated borrower. If you think that negative information HAS to stay on your credit report for seven to ten years, they can justify charging you higher interest rates.

So you are dealing with a two edged sword. It is up to you to continuously monitor your credit file and to dispute EVERYTHING that is negative. It is also up to you to make sure that everything positive is reported in a timely manner.

I hope this helps.

Robert

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