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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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If I paid off all my credit card debt
how long will it take to reflect that in my credit report? Because I would like to buy a car and want to wait till the credit agaencies are reflecting that I have no cc debt
Message edited 2/4/2008 11:18:25 AM.
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Posted 2/4/08 11:16 AM  |
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Domino
Always My Miracle
Member since 9/05 9923 total posts
Name:
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Re: If I paid off all my credit card debt
I am under the impression that not only do you have to pay off the cc debit but that you have to actually CLOSE the accounts as well. Lenders dont like to see people with large amounts of "available" credit open.
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| Posted 2/4/08 11:39 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: If I paid off all my credit card debt
you don't have to close your accounts. It could take up to 6 months for the information to reflect at the credit reporting agencies. If you have documention, you could call them and fax it and get it expedited.
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| Posted 2/4/08 11:41 AM |
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TreAnt427
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Member since 8/06 8652 total posts
Name:
Tracy
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Re: If I paid off all my credit card debt
Posted by Domino
I am under the impression that not only do you have to pay off the cc debit but that you have to actually CLOSE the accounts as well. Lenders dont like to see people with large amounts of "available" credit open.
This isn't entirely true - your credit scores will go down if you close a lot of accounts.
I was just speaking to someone when getting a preapproval for a mortgage. I asked if I should close some accounts. He said not to change a thing because we have such good credit - and we have a lot of "available credit" right now.
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| Posted 2/4/08 11:41 AM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: If I paid off all my credit card debt
I would say about 2 months...Different lenders might report to the credit bureaus at different times, so by 2 months, it should be all updated.
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| Posted 2/4/08 11:42 AM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: If I paid off all my credit card debt
Posted by Shroggie
I would say about 2 months...Different lenders might report to the credit bureaus at different times, so by 2 months, it should be all updated.
Thanks , I just called Citibank and they said the same thing. they also said with todays technology it s a lot faster than the past
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| Posted 2/4/08 11:44 AM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: If I paid off all my credit card debt
Posted by Domino
I am under the impression that not only do you have to pay off the cc debit but that you have to actually CLOSE the accounts as well. Lenders dont like to see people with large amounts of "available" credit open.
fyi
My fa just emailed this to me
"Do *NOT* cancel any unused credit cards. It will lower your FICO score. Part of your credit score is determined by the ratio of your outstanding balances to your available credit limits. If you close accounts, this number goes down and so does your score!"
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| Posted 2/4/08 11:50 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: If I paid off all my credit card debt
Posted by Blu-ize
you don't have to close your accounts. It could take up to 6 months for the information to reflect at the credit reporting agencies. If you have documention, you could call them and fax it and get it expedited.
ITA -
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| Posted 2/4/08 11:50 AM |
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Shelly
She's 7!!!
Member since 8/05 14624 total posts
Name:
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Re: If I paid off all my credit card debt
Posted by Domino
I am under the impression that not only do you have to pay off the cc debit but that you have to actually CLOSE the accounts as well. Lenders dont like to see people with large amounts of "available" credit open.
Actually, this is entirely incorrect and the WORST thing you can do. The large amounts of "available" credit show that you are someone who has earned a lot of credit, and pays it off. While the companies don't make as much money on someone like you- it shows that you are responsible and pay off your debts.
Message edited 2/4/2008 11:52:03 AM.
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| Posted 2/4/08 11:51 AM |
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Domino
Always My Miracle
Member since 9/05 9923 total posts
Name:
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Re: If I paid off all my credit card debt
 tyvm!!!! I love learning something new!!!
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| Posted 2/4/08 11:51 AM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: If I paid off all my credit card debt
Also you should never close out your oldest credit card. Your length of credit history is extremely important in determining your score.
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| Posted 2/4/08 11:53 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: If I paid off all my credit card debt
The credit card banks report your updated balances and payment status a couple of days after your payment is due every month.
So if your statement for a credit card says payment is due on Feb. 15th, the credit reporting agencies typically have the updated balance information about 5-10 days later and your scores will update as well. They update 5-10 days after the payment is due (not 5-10 days after you make the payment).
The overall process happens much quicker now than it used to years ago.
I have credit cards with zero balances from about 10 different banks and I check my report daily. In my experience most banks (Chase, Citi, BankOfAmerica, WaMu, AMEX, etc) all update very quickly.
Oh and closing accounts really have no effect on your report so you shouldn't bother with this. And definitely never close the oldest card on your account or anything older than 7-10 years.
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| Posted 2/4/08 12:05 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: If I paid off all my credit card debt
Posted by Domino
I am under the impression that not only do you have to pay off the cc debit but that you have to actually CLOSE the accounts as well. Lenders dont like to see people with large amounts of "available" credit open.
This is sort of a credit card myth. I know people with over 300k of available credit all with zero balances. They have middle class salaries and never had issues getting a mortgage or a car loan and their scores are all in the high 700s.
I would only close accounts if you are getting a mortgage AND the lender explicitly states that in order to receive a committment you have to close accounts. If they ask this then close the most recently opened accounts. Never close older accounts.
9 times out of 10 a lender won't care if you have open credit cards, they mostly look at payment history.
Don't forget most banks you have cards with monitor and check your credit every month (without you knowing). If they feel your limits are too high and you have high limits with too many other companies, they will just take it upon themselves to lower your credit lines automatically. But this is rare and doesn't happen often.
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| Posted 2/4/08 12:10 PM |
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Ginger123
Sooo happy
Member since 8/07 1235 total posts
Name:
dana
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Re: If I paid off all my credit card debt
Posted by ave1024
Posted by Domino
I am under the impression that not only do you have to pay off the cc debit but that you have to actually CLOSE the accounts as well. Lenders dont like to see people with large amounts of "available" credit open.
This is sort of a credit card myth. I know people with over 300k of available credit all with zero balances. They have middle class salaries and never had issues getting a mortgage or a car loan and their scores are all in the high 700s.
I would only close accounts if you are getting a mortgage AND the lender explicitly states that in order to receive a committment you have to close accounts. If they ask this then close the most recently opened accounts. Never close older accounts.
9 times out of 10 a lender won't care if you have open credit cards, they mostly look at payment history.
Don't forget most banks you have cards with monitor and check your credit every month (without you knowing). If they feel your limits are too high and you have high limits with too many other companies, they will just take it upon themselves to lower your credit lines automatically. But this is rare and doesn't happen often.
thank you so much!
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| Posted 2/4/08 2:25 PM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: If I paid off all my credit card debt
Posted by Ginger123
Posted by ave1024
Posted by Domino
I am under the impression that not only do you have to pay off the cc debit but that you have to actually CLOSE the accounts as well. Lenders dont like to see people with large amounts of "available" credit open.
This is sort of a credit card myth. I know people with over 300k of available credit all with zero balances. They have middle class salaries and never had issues getting a mortgage or a car loan and their scores are all in the high 700s.
I would only close accounts if you are getting a mortgage AND the lender explicitly states that in order to receive a committment you have to close accounts. If they ask this then close the most recently opened accounts. Never close older accounts.
9 times out of 10 a lender won't care if you have open credit cards, they mostly look at payment history.
Don't forget most banks you have cards with monitor and check your credit every month (without you knowing). If they feel your limits are too high and you have high limits with too many other companies, they will just take it upon themselves to lower your credit lines automatically. But this is rare and doesn't happen often.
thank you so much!
Ditto!
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| Posted 2/4/08 2:28 PM |
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