Credit report?
hello people, I'm planning to pay off all my redit cards (about 5), all have exceded the amout approved, anyway how long will it take to clear off from my credit report when i pay it off within 2 months. I'm planning to buy a town home by december.
Public Comments
- Before you pay everything down to zero, talk with a mortgage broker first. When you go for a loan, the lender is going to want to see that you have SOME credit and will of course look at your credit experience. Your experience won't be wiped away by paying everything down to zero. They may recommend that you pay 3 off and keep one or two, although reducing the balance will still be a great idea.
- you might want to speak with a credit counselor, some are with your bank. Depending on your credit score you just might get a loan by December. If your score is below 700 you might want to wait until you rebuild your credit score
- Allow 30-45 days after paying off the account for it to reflect in your credit report. Be careful on closing established credit cards because this may impact your credit score negatively. Consider talking with an experienced mortgage banker so they can give you some guidance on this.
- I have paid off cards on my report... I think they stay on there for years.... 7 perhaps? they won't just take them off when the account is paid.... the only thing you can get taken off your report is errors....
- If they are already derogatory or delinquent, they won't come off your credit report for 7 years. You have time to fix your credit before you get a mortgage. It's very smart to start thinking about it now. Good job on that. Learn how to optmize your credit scores so that you can get the best rate on a mortgage when the time comes.
- All credit card companies report at different times to the credit repositories, but at minimum, they are required to report once per quarter. I would say it would take about 90 days at the most. Your accounts will show a zero balance and will list your credit limit. Also, DO NOT close out any of the accounts....that will have a NEGATIVE impact on your credit. As an underwriter for 11 years, I cannot tell you how many deals fell through because loan officers told their clients to pay off debt and close out the accounts. Paying them off is enough.
