Credit score question

[TripleAAA]

Well I just paid off all my debts with the exception of my home loan. I'm doing this in anticipation of applying for a new loan, but was curious to know how long it generally takes for the credit bureaus to possibly adjust one's score from the time a debt is paid.

 

[ScottFern]

www.creditboards.com

 

[Descartes]

It should update ~30 days depending on when you actually paid it.

 

[Heisenberg]

It's a month or two IIRC. RossMAN will know for sure if he's around.

 

[axnff]

I was told by a mortgage broker that it could take 6 months or more before paid-in-full consumer debt is positively reflected in your credit score. It partially depends on how often your lenders update your credit information (many only do it every three to six months), and I believe that your score doesn't actually go up until balances have been paid down for a while (this last bit may not be true, it is only my understanding based on what I was told). YMMV

 

[fbrdphreak]

What kind of loan are you considering? 6 months is a safe time to wait, but if its a big loan maybe even 1 year.

 

[kranky]

One thing you can do is get a copy of your credit reports now (annualcreditreport.com is free if you haven't used it in a year). You should be able to see how often those creditors update your record. It's probably monthly.

The lenders decide your credit score, not the credit bureaus. If the creditors you paid off update records monthly, you can wait two months to be safe, and you should have a nice clean record when you approach the lender.

 

[TripleAAA]

Well I'm glad I have at least another month or two before I apply for another loan. Hopefully by then it will reflect.

 

[TripleAAA]

Originally posted by: fbrdphreak
What kind of loan are you considering? 6 months is a safe time to wait, but if its a big loan maybe even 1 year.

Won't be a huge loan, probably in the 100k range and I plan on putting somewhere between 20-50% down on the new place. I was told by my previous lender that if I'm able to put at least 20% down and have good credit (which I do anyways) that I should be able to get the best rates.

 

[kranky]

Based on that scenario, you will be fine.