Credit question?

Question

If you have bad credit from maxing out your credit cards , then you pay them off how long would it take to get ur credit score back up?

Answer 1

Without knowing if you are talking about just maxing out your credit then paying on the due date, maxing out your credit and paying past the due date but before the charge off, maxing out your credit and not paying leading to a charge off -

If you max out your cards and you pay while you are still within the due date - then the creditor will update the account at their regular time the next month. Your credit should rebound from the high utilization you were carrying.

If you max out your cards and you pay past the due date - the creditor will update the account at their regular time the next month. Your credit will show better utilization but you will have a negative mark for the late, which will hurt. The late will remain on your report for 7 years from the late. It will continue to hurt your credit, but it will hurt less as the years go by. If your report is pulled for a manual review, even close to the 7 year mark, it may have a negative impact.

If your card is charged off, it could be reported by both the original creditor and a collection agency (double whammy) If you pay the collection agency without requesting deletion on paying, it will update the account to make it look newer than it actually is (updating is not re-aging) and by looking newer, it will hurt more than it had before you paid it off (even if the account is marked paid).
It would continue to report for the same length of time and cannot be re-aged when paid.

If it is charged off, it would run for 7 years from the first time you became 30 days late and never brought the account current leading to the charge off.

Answer 2

go to www.adviceontime.com and read their article on credit. they have some really good info