Hi, Does anyone have personal experience with paying off/down balances and old charge-offs with relation to deletions, how long does it take for the credit bureaus to update your report and score? I am paying off over 75% of my outstanding balances with my creditors and I am hoping they will update the report soon because I plan on applying for a mortgage loan early next year. Any comments on how long it takes to update. NJ_Newbie
Depends upon the creditor, not the cra... the cra is live information updated daily. If your creditor does report the information for 6 months, it takes 6 months, but most report monthly. If you paid it off, the account should show correctly between 30-60 days depending on when your bill cuts and when you pull the report.
It has been my experience that the cra's update when the creditor sends in the tape update which for me has been either the first week of the month or just after your payment closing date. If your payment is due on the 15th, it might update around the 20th.
It can depend. But if you want to be very sure, just keep a record of what you've paid (Zeroed out statements, etc). You might mention to your mortgage officer that you have just paid off a bunch of balances, and that you have the statements to prove it if there are questions. I've had good luck with things like that. When I applied for my first mortgage, my husband had some old student loans on his credit which had been defaulted on and sent to collection. They were still showing up as 'unpaid' but I went in there armed with that information (always, ALWAYS, get a copy of your credit reports before you apply) and a copy of the original promissory note with 'Paid in Full' stamped on every page. As far as I know, the underwriter just threw that information out. I also a 'late pay' on my report which had never happened - which had been removed several times. I managed to get a letter from the credit card saying it was their 'computer error' during one of my prior battles. It had been off my report for several years then just showed up in the nick of time for my mortgage (why do these things always appear at the worst time?) Rather than delay my application, I just informed the mortgage officer and gave him a copy of the letter to send to underwriting. Same thing with my recent refinance. I managed to boomarange about 5k into about 20k doing balance transfers. Well, at least on paper. But I told my mortgage officer what was going on and they used the actual amounts. Overall, I think you have the best chances with mortgages to mitigate any bad credit you might have had since if you have a good mortgage officer, and you're prepared, you can send alternate information directly to the underwriting officer. Just my 2 cents (sorry for the ramble). Myschae
