Free Credit Report Quarterly
2010
I have paid off my outstanding debts in the past 3 months, when does it show on credit report.?
I was past due on 2 credit cards that the companies closed, still owed the paramedics $500, and owed Cingular for canceling a contract! All these were showing up on my credit report in November which landed me a 13.5% interest rate on my car!!!! From November until last week, I have busted my butt to where I owe NOTHING but my car and house (which in 9 years of owning it, have never been late on a mortgage payment). I am totally free and clear from the companies I mentioned! When will this improve my credit score? Do they redo credit scores quarterly or what? Next June 2009, our mortgage balloons, I want my credit score to be in great shape. What advice can i get from you all? THANKS
It is going to take some time. Any late payments you have ever made will stay on your records for at least 3 years. Now as those late payments become older over time, they will have less of a negative impact on your score. This will be a gradual process, not one day it all comes off. In the meantime you need to keep you credit perfectly clean to make sure your scores keep moving in the right direction. If you do this, will your score be better on June 2009 than it is today? Yes. But I don’t know if it will have improved enough to get you to where you want to be in regard to refinancing that balloon. Keep in mind that wherever you are at that time, be prepared to sit down with your lenders and make a clear case to them why you are a good credit risk. Describe your situation to them And how you got out of a difficult time. Besides the application, put together some kind of presentation which clearly shows what you did. Personally, I’m a commercial insurance underwriter (not a loan underwriter) and I can tell you most certainly that I viewed an insurance application and that insured much more favorably if they did a professional job on their presentation than if they didn’t. It says a lot about a person or business the amount of effort they put forth trying to get insurance or a loan. Show in your presentation that you put some effort into it. Good luck!
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