Let's say my credit score is 580, and the only thing wrong with it is too much "credit utilization", i.e. my total credit limit is 5000 and I am using up 5000 (100%), but all accounts are current and I haven't missed a payment for over two years. If I paid the entire 5000 today, will my credit score be much improved by tomorrow? Next week? Next month? How soon will I see significant changes?
2007-03-01 20:21:26 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Paying off all of your debts immediately does not help you with improving your credit. Because you should show lenders that you are a good BORROWER. Your existing report shows lender that you pay your payments in full once you have money and you don’t when you are financially in trouble. Therefore you are not a good borrower to a lender (you are risky and they don’t make money out of you). So here some stuffs I suggest to do to polish your credit report and improve your credit:
1) Do not spend more than 1/3 of your limit. That's a rule. Say you have $500 credit limit. So do not spend more than $150 with your credit.
2) Do not pay your existing credit balance in full every month. Pay more than minimum payment but do not pay full. Say your minimum due is $10. I suggest you to pay like $50-$70 each month. Yes you should pay some interest but that's a price to improve your credit.
3) There are lots of articles here which you can find useful to boost your credit.
http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
2007-03-02 09:36:17 · answer #1 · answered by Anonymous · 0⤊ 1⤋
no longer very quickly in any respect, your history tells them the way you take care of money, you decide on history that exhibits you're rock stable which comprise your funds, funnily sufficient once you would be rock stable which comprise your money, you will no longer ought to have a solid score given which you will no longer choose the money, that's a seize 22 difficulty. frequently, borrowing money is stupid and that i amplify that to even determining to purchase residences. All you decide on is 30 grand to purchase something good at an public sale and you could save that in the time of decrease than 4 years working at McDonalds. RE: how in a well timed fashion does your credit improve after paying off credit playing cards? I actually have a solid charge history with all my credit strains yet I even have countless revolving credit card debt. I plan on paying all of them right down to decrease than 25% balances interior the subsequent 3 months. My credit is...
2016-10-02 06:11:08 · answer #2 · answered by ? 4 · 0⤊ 0⤋
It will improve as soon as the credti card company reports it to the credit report agency. Ussualy that is around 2 times a month but it can vary from card to card.
I would say the max time from when you pay it, until its shown on your credit score would be 1 month.
2007-03-02 01:37:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You will see an improvement when the credit card company reports the monthly updated information to your credit reports.
For example - you pay today and your credit card company reports on the 5th, your scores will reflect the change on the 5th. If you pay today but your credit card company doesn't report until the 25th, your scores will not reflect the change until the 25th.
2007-03-01 20:48:50 · answer #4 · answered by echo 7 · 1⤊ 0⤋
Improvement in credit card rating can be seen on monthly basis.
2007-03-01 21:13:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋