Paid of my MBNA! Quick question...

iVillage Member
Registered: 04-15-2003
Paid of my MBNA! Quick question...
4
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.
iVillage Member
Registered: 03-26-2003
Tue, 04-15-2003 - 7:36pm
Well done. Can you come and pay my MBNA card now? LOL I owe them $12K. I wish they had never crossed my doorstep. One of those "you've been preapproved things" which I promptly sent in and as I kept going over my limit they kept increasing it. How kind of them. GRRRRR!!! Oh well, I learned the hard way.

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

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iVillage Member
Registered: 04-08-2008
Tue, 04-15-2003 - 10:48pm
Congrats on paying that one off!!! Soon I'll be able to say the same about MBNA.

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!

iVillage Member
Registered: 03-26-2003
Wed, 04-16-2003 - 4:02pm
I'm in a similar situation... I just have too many accounts that are close to maxed. Congrats on the MBNA payoff! I have an MBNA loan which isn't bad because the rate is decent (13.5%) on the current balance and I DON'T plan on borrowing any more because they promised that if I did the rate would be more than 17%. I'm thanking my lucky stars they left my current loan rate alone.

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

 

iVillage Member
Registered: 04-15-2003
Wed, 04-16-2003 - 4:52pm
Thanks for the link, it was really helpful!