Paid of my MBNA! Quick question...
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Paid of my MBNA! Quick question...
| Tue, 04-15-2003 - 4:40pm |
I finally paid off my monster MBNA card (over $5,000). My question is how soon will my credit rating improve? I still have two credit cards, but they are not nearly as high and I am going to start doubling up on the payments. If anyone can help me out I would really appreciate it.
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I'm not sure about the credit thing. I was told by the credit card that here in Canada they don't report anything to the credit bureau until you miss two payments in a row. So even if you are consistently late, they don't send in any kind of report, or even if you miss a payment here or there. But it may be different in the US.
Anyway, congratulations on the success.
Tam
About your credit score... I think it depends on why your score was low. For example, my credit score is low because I have too many open accounts with high credit limits and most of them are "maxed". No lates, no judgements, no collections, just "too many". I am refinancing my home and paying most of them off (MBNA "not" one of them). I will then close most of them. I am going to keep one that I have had for 15 years and ask them to lower my credit limit (from $13,500 to $1,000).
Check out the following website, I have found it very helpful when it comes to credit scores:
http://www.creditinfocenter.com/creditreports/scoring/
Again, Congrats!
Anyway, I pulled my credit report a few weeks ago, not long after I had paid off one of my cards. I did one of those "all three reports" things and one report said I still held a balance of $200 (or so) and the other two read a balance of $500 (or so) on the same card so at worst they were about two to three months behind on the balances.
So with that in mind, I'd say in about three months (to be safe) the payoff should register and if you still carry a limit but a 0 balance, that could help your rating. Ratings are very weird. They'll take points off you for having too high of balances, but they'll also take points off you for having too much available credit. It's quite a balancing act to please the credit gods.
Sharon