If your credit scores are negatively impacted by high credit utilization, how long after debt paydown do scores improve?

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alexcr
Posts: 18
Joined: Wed Jun 21, 2017 5:50 pm

If your credit scores are negatively impacted by high credit utilization, how long after debt paydown do scores improve?

Post by alexcr » Sun Apr 14, 2019 2:19 pm

If your credit scores are negatively impacted by high credit utilization, but you then pay down your debt to return to more reasonable credit utilization (e.g. 30%), do your credit scores improve immediately? After one month? Longer? Curious how long it takes to see the impact...

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8foot7
Posts: 1303
Joined: Mon Jan 05, 2015 7:29 pm

Re: If your credit scores are negatively impacted by high credit utilization, how long after debt paydown do scores impr

Post by 8foot7 » Sun Apr 14, 2019 2:21 pm

As little as a month. Whenever your new balances are reported, basically.

Thesaints
Posts: 2318
Joined: Tue Jun 20, 2017 12:25 am

Re: If your credit scores are negatively impacted by high credit utilization, how long after debt paydown do scores impr

Post by Thesaints » Sun Apr 14, 2019 2:22 pm

I shall see in the next few months when about 40k worth of 0% APR come to an end. In the process, my FICO dropped 80-100 points down from ~820.
I considered it an exaggerate reaction since I never exceeded 35% of available credit, but the credit rating folks clearly know what they are doing, as demonstrated by past history...

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