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Credit score Q? |
If I pay off everything I have in collections and pay off my credit cards so my full credit is available... how long will it take for that to reflect on my credit score? and do you think it will go up significantly? or will it take time? I'm 25, I only have $300 in collections, and I have 2 credit cards that are at about 60-65% maxed out. I also have a large mortgage ($293k). I make 37k a year and my husband makes about 75-80k. He has about 3k in collections, all medical bills from before we were married. My credit score I'm told is only about 530. I'm wondering why it's so low and how much it will come back up. Never been late on mortgage payment, only late on cards once (30days). The only reason we have stuff in collections is because we didnt' know it was owed. Didn't get any delinquent notices. Probably because we moved. Read the blog listed below in the sources as it provides a ton of information about credit and credit scoring. The collection account are one of the biggest negative items with credit (amount does not matter) and can have a major impact on your credit score. Also, revolving debt such as credit cards are one of the biggest items to show how responsible you are with your credit. Having late payments and being over 50% of your limit to balance ratios also can have a bit impact on your credit score, especially if you do not have a long, established credit history with numerous accounts throughout time. These are the reasons your scores are probably as low as they are. As soon as you pay off your collections and you pay your credit cards down or off your scores should be impacted somewhat immediately. However, as to how much they will go up and how long they take to get up to a much higher level is very hard to say. You are probably looking at 12-24 months after you resolve your credit issues to get your scores over 620 (with ontime payments on everything). If you pay off your credit cards do not close them (that will hurt your credit score) Source(s): Great source on credit scoring and credit tips: http://www.fshomeloan.com/index_files/mo... the amount of money in collections matters much less than the fact that you have been sent to collections. Credit score is a way of evaluating your previous credit and determining future risk. If you got sent to collections for $300, it means you owed money and didn't pay it, what garentee does the bank have if they loan you a bigger amount when you haven't even proven that you can pay off your small bills? That is why your credit score it low. It will help to get those credit cards payed off too. Sorry I don't know how long it takes for credit scores to recover. Collections hurt your score pretty bad, pay those off. You may not have enough credit with only two cards and a mortgage. You want to carry a small balance on the cards, 10-15% will help. Paying them off sometimes hurts because you aren't paying regularly if you don't owe anything. Your husband's credit can be affecting yours if you pulled a joint report, you may need to raise your credit limits as well, the higher the limit the better, as long as you keep the balance owing low. It takes a few months to show up at all, credit companies are usually a month behind in reporting to the bureaus, you can get it done quicker through a credit lender with an expedited dispute resolution, and credit re-score. Mortgage lender for 5 years. Hi, I used "Loan Web" to refinance my home loan.I got the lowest rate in nation( through my extensive search).It's legitimate.I came accross this company on NBC News Special Edition.Check it out here: http://301url.com/aeh |
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