credit score change?

Deal Score0

last month I paid off two debts from my credit score. They are reported IMPROVED accounts, and PAID. But my credit score didnt move a point!

whats the deal?
i have one derogatory account left on my credit score. but that still makes my debt to income ration less than 15%

  1. Reply
    Jeremy Kitching
    July 20, 2011 at 11:52 pm

    Were these account already in collections? Typically, if the accounts have already gone to collections, then your score may not rise at all. This is because the original lender had already charged off the debt, so that might still be causing a problem.

    The good news is the debts are paid. With time your score will increase. Continue to make on-time payments to those bills your currently have. Also, if you still have any revolving debt accounts yet to keep them under a 20% utilization rate.

  2. Reply
    Mike C
    July 20, 2011 at 11:53 pm

    Typically when you pay off collections it will increase your score, but sometimes it will not. Do you have any other good credit reporting ? If not you might consider reading this article.

  3. Reply
    July 21, 2011 at 12:20 am

    The ratio of revolving debt to available credit limit is a big part of your score. Carrying credit card balances of 30% or more hurts your score.

    Although taking into consideration when you apply for a loan, your debt to income ratio is NOT reflected in your credit score. Your actual income is not reflected on your credit report.

    Paying off old debt does not improve your score. The damage is already done. However, paid old debt looks better than unpaid. Creditors do look at the entire credit report,not just the score.

    You will need at least 24 months of consistent, on time payment history before you see improvement in your score.

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