How fast does your credit score rebound from paying off credit card debt?

[JetFueledThoughts]

I know the answer obviously varies, so below is some quick background / detail:

I’ve been blessed enough to have a really great year at work, and got a bonus that is an amount of money that I’ve never seen even close to before in one time.

Debt : I’ve had right around $30,000 in credit debt circulating across 5-7 cards for the last few years. My credit utilization was high, over 80%. Candidly, I make good money but my credit score is uglehh

Once this check hit I immediately paid off 90% all of those cards, with plans to pay off the final 10% this week & next week (seemed smarter to spread it out?). By this time next week I will be fully free of credit card debt (not to mention cutting up all cards but my Amex Gold). And after using the bonus to wipe out that 30k in debt, I still have a little over 80% of it sitting in my account.


My question, how long will it take for me to see my credit score get back to where I’d feel comfortable making a larger purchase like a property?

Credit Details : My credit score is prob around 630-660. But I have no bankruptcies or defaults on me ever, if anything it was small claims dollars from a dentist I stiffed and I’d pay it off later.

My only current debt : I have a car note on a Lexus that’s below $200 per month, as I paid 75% of the car in cash. First year into a 4 year note to own, I haven’t missed a payment. Also I have a small loan out that I took out a few years ago that I’ve paid out each month on time for over 2 years now. 18 months left at a total of $13,500. Wondering if I should just pay all that down now as well? Or if it looks good on my credit to have this loan consistently paid on time each month?


Open to all advice on credit score, as well as investment suggestions for steady growth. I have around 15k in a vanguard that I’ll be adding two w/ more stable growth and dividend paying stocks.

 

[Third Kind]

I would say a month or two since it takes a min for it to be reported to the bureaus.

And no.. no debt looks good on your credit (they say having a mix of types of credit is good but I think that's bs). I have zero debt -- other than my monthly credit cards debt that I pay off in full before the bill is due -- with a damn near perfect credit score. That whole having debt looking good thing is more than likely some horse shyt credit card companies flooded the streets with so they can charge interest.

It looks like you are $18K in debt? I would suggest you clear out ALL debt before you start looking to invest. And keep your utilization at under 9% at all times.

That cutting up cards shyt won't do you any good btw. You will simply move the charges to the Amex card (no limit right?). You need rethink money and possibly reconsider your life choices.

You on your way up. You love to see it.

 

[MasterOfAllHeSurveyz]

Props to cutting it down playa.

 

[Obreh Winfrey]

How are FICO Scores Calculated? | myFICO | myFICO

And no.. no debt looks good on your credit (they say having a mix of types of credit is good but I think that's bs). I have zero debt -- other than my monthly credit cards debt that I pay off in full before the bill is due -- with a damn near perfect credit score. That whole having debt looking good thing is more than likely some horse shyt credit card companies flooded the streets with so they can charge interest.

Having a mix of credit isn't BS, it's just not the most important factor. Paying off debt consistently and having a low debt to loan ratio will be the biggest contributors. Having some balance showing on your credit report looks good in the fact that it shows you make use of the credit you've been extended. Ironically, having no utilization will drop your score a few points, but it's often negligible in the bigger picture. If you know when your credit card statements are cut, you can game your score a few points, but it's not worth the effort to do it every month. People should also be aware that you don't have to pay interest as long as you're paying off the previous statement in full before it's due. Anything less and that interest you pay is paying for everyone else's rewards.

 

[Jekyll]

When I was buying a house the bank hooked me up with someone who could help me boost my score to get the best rate. Dude looked at my report and just told me to pay my cards down to 15% of the limit. He wrote the credit bureaus with my proof of payment, they updated my shyt instantly and my shyt jumped like 70pts in a week after I paid it.

I still think to this day that it’s some back door shyt that went down but it worked.