How long does it take for your credit score to increase after buying off debts?

[Thatrogueassdiaz]

Hey brehs,


My credit score has took a hit these last two years, as I have had a lot of financial problems. I'm getting ready to end a relationship that has been the main cause for my recent credit issues.

My current credit score is 601

My question is this: how long will it take to increase my score?


I have A LOT of debt because of my student loans. I've run up my two credit cards because of financial issues (I had just got a deal to pay them off with the Credit Union )

If I pay off my cards again and continue making on time payments to Sallie Mae, for say, 6 months...how long will take for my score to increase, and by how many points will it increase?

 

[Ed MOTHERFUCKING G]

Credit 101: (and i am writing this, not pasted)
I'll toss it in spoilers if you know this shyt...

Spoiler

Your credit is based on 3 main things and a few ancillary things, in no order

1. Pay history
Dont be late...by that i mean 30 days late...never...be late. Your pay history regardless of who or what it is is a major part of your credit. This includes medical and other bills if they go very late.

2. Credit utilization.
This is a math problem. If you have x amount of available balance on revolving credit (credit cards, home equity lines, etc...we will say 10000 for this example), and y amount of balance currently, y/x = your credit utilization %. Do what you can to keep this below 50%. Its the theory for a creditor that "hey if i need to get paid, can he get the money from his other creditors?". You get this one though since you have talked about paying your cards off. Also consider opening new tradelines (credit cards) to help your total available credit in the event you do need to use some.

3. Time.
Keep old tradelines open simply because someone who has had credit is in theory more credit worthy. There is no way to accelerate this...just wait and the time portion solves itself.

4(minor). The mix of credit you have between mortgage, installment, and revolving credit.

Now, to answer your question...if you pay your cards off (not move balances) that should have an immediate (like < 2 months) positive effect on your credit. Unless you have a bunch of minor and major derogatories (30,60,90 days late...or god forbid..chargeoffs) it shouldnt take long. If you do....whelp... idk maybe a year or so....Up to 7 if they are bad chargeoffs or judgements..late payments hold you back if you had any.

Your hardships; did they cause late payments...collections...or just high use of credit?

 

[Thatrogueassdiaz]

Credit 101: (and i am writing this, not pasted)
I'll toss it in spoilers if you know this shyt...

Spoiler

Your credit is based on 3 main things and a few ancillary things, in no order

1. Pay history
Dont be late...by that i mean 30 days late...never...be late. Your pay history regardless of who or what it is is a major part of your credit. This includes medical and other bills if they go very late.

2. Credit utilization.
This is a math problem. If you have x amount of available balance on revolving credit (credit cards, home equity lines, etc...we will say 10000 for this example), and y amount of balance currently, y/x = your credit utilization %. Do what you can to keep this below 50%. Its the theory for a creditor that "hey if i need to get paid, can he get the money from his other creditors?". You get this one though since you have talked about paying your cards off. Also consider opening new tradelines (credit cards) to help your total available credit in the event you do need to use some.

3. Time.
Keep old tradelines open simply because someone who has had credit is in theory more credit worthy. There is no way to accelerate this...just wait and the time portion solves itself.

4(minor). The mix of credit you have between mortgage, installment, and revolving credit.

Now, to answer your question...if you pay your cards off (not move balances) that should have an immediate (like < 2 months) positive effect on your credit. Unless you have a bunch of minor and major derogatories (30,60,90 days late...or god forbid..chargeoffs) it shouldnt take long. If you do....whelp... idk maybe a year or so....Up to 7 if they are bad chargeoffs or judgements..late payments hold you back if you had any.

Your hardships; did they cause late payments...collections...or just high use of credit?

All 3. Well, take that back, only 1 thing went into collections, this unnecessary medical bill. The rest have been late: cell bill, sallie mae, cable. I've put up to 1500 on each card in like 6 months. I had some emergencies and had to use the cards. I'm not worried about paying it off because I'm getting ready to move and I will have substantially more funds to pay off my shyts in a hurry.

 

[Ed MOTHERFUCKING G]

Whelp...i'll be honest....its going to be tough. Like, well over a year to get into the mid to high 700s. Collections and lates (btw, for 30/60 late, that doesnt matter for your utilities and phone until they send to collections) you will have to build a pay history that out weighs that and have low utilization.

Follow the model in my spoiler for as long as you can and that solves the rest.

 

[88m3]

Buy a car

 

[Thatrogueassdiaz]

Whelp...i'll be honest....its going to be tough. Like, well over a year to get into the mid to high 700s. Collections and lates (btw, for 30/60 late, that doesnt matter for your utilities and phone until they send to collections) you will have to build a pay history that out weighs that and have low utilization.

Follow the model in my spoiler for as long as you can and that solves the rest.

That isn't too bad.

Basically your model says to have a bigger balance then balance usage, correct? I mean that's all I see

 

[Slaimon Khan Shah]

Avoid dealing with interest bros. God destroys interest but increases charity.