If I Pay off my Credit Card, How Long Will it Take for my Credit Score to Increase?

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Latest post Thu, Aug 27 2009 3:18 AM by mark456 (4 pts ). 3 replies.
  • If I Pay off my Credit Card, How Long Will it Take for my Credit Score to Increase?

    If I pay off my credit card balance in full, how long will I have to wait to see an increase of my credit score? Or would it better to leave a small balance on my card?

    I need a little help/direction before I decide if I should pay off a credit card before I apply for a car loan in a few months. Any nuggets of wisdom would be absolutely great and very much appreciated. Thanks in advance for whoever can help answer my question.

    Published by reader (102 pts ) on Jul 26 2009, 05:38 PM to
    Personal Finance Discussions
  • Re: If I Pay off my Credit Card, How Long Will it Take for my Credit Score to Increase?

    In reply to

    First, you'll need to understand how a credit score is determined. Once you know what makes up your credit score, you can make decisions to help your credit score.

    As for paying off a balance in full, it is a wise option to not only help your credit score but you'll also save money by avoiding interest on the balance. Using your credit card for small purchases each month and paying off the balance can also be a good way to increase your credit score since it will show that you are always ontime with your payments.

    Credit card companies report payment and balance information monthly to credit agencies, so you should see the change (hopefully an increase if you've done all the right things) to your score within a few months. For more help, read about simple ways to increase your credit score.

    Published by Brett Juchem (833 pts ) on Jul 26 2009, 06:08 PM to
    Personal Finance Discussions
  • Re: If I Pay off my Credit Card, How Long Will it Take for my Credit Score to Increase?

    In reply to

    What Brett offered is very helpful, but I do want to add that creditors generally report to agencies every two months. You'll want to give it at least that, if not four to six months, to let the payments you've made cycle through and build a rep before the score will rise.

    Published by Lucinda Watrous (23,559 pts ) on Jul 29 2009, 09:55 AM to
    Personal Finance Discussions
  • Re: If I Pay off my Credit Card, How Long Will it Take for my Credit Score to Increase?

    In reply to

    If you're concerned about your credit score, do not arbitrarily cancel ... But if you're not careful as you close accounts you can accidentally increase that ratio. ... credit cards is pretty much always the better idea in the long run, ... I decided to take out enough to pay

    mark456

    Credit card offers

    Published by mark456 (4 pts ) on Aug 27 2009, 03:18 AM to
    Personal Finance Discussions
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