how long does it take to increase my credit score after paying off the entire credit card balances ?

I plan of buying a house for the first time on 2008.Right now my credit score is 650

Public Comments

1. Stuff generally shows up on your dredit report about 3 months later. As for buying a house you can get a good deal if your credit is 680 and higher so your pretty close!
2. As soon as the credit card companies report.
3. It takes a month to see the $0 balance. Don't remove the card right away. Wait at least a year or two. Then close the account. I was told by one of the credit bureaus that having a number of cards was okay and good for your credit score, but too many that have not been used for a number of years pulled your rating down. My current rating is 719 with Equifax, but it may get higher since I closed on account that had been open with 8 years and no charges or payments, and another that had no action on it for 5 years. Depending on how you handle your accounts, you should be in good shape. Good luck.
4. Most creditors update their files monthly, but often times delays pop up for various reasons. Contact your creditors and request CERTIFIED letters of payment in full (basically a receipt) signed and dated by the relevant manager. If any of your bills you just paid off is still showing up on your credit many times you can use that letter to satisfy a lender's credit requirements and get a loan app. pushed through.
5. If you want to purchase a home in 2008 I would suggest a couple of things. First make sure you keep the card open the more credit you have available the higher your score will be. Second, write a letter to each credit bureau asking them to please update the information on that card to show a $0.00 balance, simply write to them and state the information on your file is incorrect and for the credit bureu to update the information. They have 30 days to correct it, plenty of time for you new home purchase
6. your credit score could stay at 650 for awhile longer, it will showed you paid the balances, but items don't get removed for up to 7 years.
7. SPIFIMAN's answer is the simplest. It is when the balances are reported. These times can vary, but most do report monthly.
8. Paying off debt sure will help your score get higher and qualify your for your mortgage next year. But do NOT close your credit card accounts. Because the FICO score calculate the debt ratio, which is the money you owe over the total credit line that is available to you. Even if sometimes the mortgage landers don't like you have the ability to spend too much money. The way to deal with that is request your credit card companies to lower some of your available credit line. But definitely NOT to close your accounts.
9. Credit cards sure can be confusing. One of the best things you can do is take action now to start building up your credit score. You may be interested in this free resource that teaches you the ins and outs of credit cards, including how to improve your credit score: http://www.followmeforgoodcredit.info Good luck