Posted on: 10th Apr, 2007 08:46 am
I paid off $28,000 in debt last week, I found a house I want and the closing is April 30th. My current credit score is 630 but using the simulator online it says by paying off my debt it will increase to 730. (I have never had a delinquent payment or public record).
Now I know there is a huge difference in the interest rate from 630 to 730... how can I get my credit updated before the closing to reflect that I paid everything off?
Now I know there is a huge difference in the interest rate from 630 to 730... how can I get my credit updated before the closing to reflect that I paid everything off?
Your score will be affected by changes in your credit report.
For example, if you close two accounts, it will lower the total number of open installment accounts & will help to improve your score. On the other hand it will also lower the total number of all open accounts which normally results in lowering the score.
Closing the accounts will also affect the average of all accounts which is also one factor causing the score to increase or go down.
Let me tell one another thing, closing unused cards should not be used as a short term strategy for raising the score as owing same amount of debt but with fewer open accounts can lower the score.
So you need to make all the calculations before going ahead with paying off the debts.
For example, if you close two accounts, it will lower the total number of open installment accounts & will help to improve your score. On the other hand it will also lower the total number of all open accounts which normally results in lowering the score.
Closing the accounts will also affect the average of all accounts which is also one factor causing the score to increase or go down.
Let me tell one another thing, closing unused cards should not be used as a short term strategy for raising the score as owing same amount of debt but with fewer open accounts can lower the score.
So you need to make all the calculations before going ahead with paying off the debts.
I do not think your score can change that much within a month. Stats tell that in about 3 months period only 1 in 4 people had a 20 point change in their scores. These simulations are not very reliable jdhf99.
Hi Jdh,
Welcome to the forum.
Creditors generally update payment related information to the credit bureaus once a month. If updating your credit report with the current information is your primary concern, then have a talk with your creditor. Ask him if he has updated information about your recent payments to the bureaus. And, then you may request the bureau for a copy of the report within 60 days of the update.
Next, try to find out if all the details in the report are correct or else you may have to dispute the errors with the bureau.
Hope this helps..
God bless you.
Samantha
Welcome to the forum.
Creditors generally update payment related information to the credit bureaus once a month. If updating your credit report with the current information is your primary concern, then have a talk with your creditor. Ask him if he has updated information about your recent payments to the bureaus. And, then you may request the bureau for a copy of the report within 60 days of the update.
Next, try to find out if all the details in the report are correct or else you may have to dispute the errors with the bureau.
Hope this helps..
God bless you.
Samantha
jdh,
You can get a free copy of credit report from annualcreditreport.com. For more details, just refer to http://www.mortgagefit.com/credit-rating/reportaftercreditdenied.html .
You can get a free copy of credit report from annualcreditreport.com. For more details, just refer to http://www.mortgagefit.com/credit-rating/reportaftercreditdenied.html .