BILL'S ANSWER
I can tell you, the typical credit reporting cycle is 90 days, or quarterly -- so even if they update your record within 14 days, it is likely that it will not show up on your credit report until the next cycle (or several months in the future). There's quite a bit of information on credit reporting and credit reports on the Bills.com Credit Report page. Many of the larger banks and finance companies report updated information to the credit bureaus every month. However, some smaller financiers only report on a quarterly basis.
As to how it will affect your score positively, it is important to understand how your credit score is calculated. Your credit rating is calculated based on several variables, including:
1) Payment history, which counts for approximately 35% of your score, is the most heavily weighted factor used in calculating your credit score. Consistently paying your bills on time has a positive influence on your score, while late or missed payments will hurt you in this area. If you have delinquent payments, the older the delinquency the less the negative impact on your score will be. Collection accounts and bankruptcy filings are also taken into consideration when analyzing your payment history.
2) Total debt and total available credit, which counts for about 30%. This section looks at how much debt you have compared to the total available credit on your accounts. If all of your accounts are maxed-out, you will be considered a poor credit risk, because it appears that you are struggling to pay off the debt you have already incurred. If your account balances are relatively low compared to your available credit, this part of the risk analysis should help your overall credit score. The score calculation also looks at these two factors independently. Having too much available credit, whether you have used it or not, could hurt your credit score, as statistical studies have shown that people with excessive amounts of available credit are a higher credit risk. Unfortunately, the bureaus do not define exactly what they consider excessive, so best tip is to use credit conservatively and to keep your debt to credit limit ratio low.
3) Length of positive credit history, which counts for about 15%. The longer you maintain accounts in good standing, the better your score will be. This shows that you are able to make a long-term commitment to a creditor and are consistently responsible about making your payments.
4) Mix of types of credit, which counts for approximately 10%. Having several different types of credit, such a credit cards, consumer loans, and secured debt, will have a positive influence on your credit score. Having too much of one type of credit can have a negative impact.
5) The number of new credit applications you have completed recently, which accounts for about 10% of your score. Applying for too much new credit in a short time period makes indicates that you could be credit risk, as you may be desperately trying to keep your head above water. The models make an exception for people who are shopping around for a loan, so if you are simply applying to see who can give you the best rate on a new loan, you need not worry too much about damaging your credit score.
If you would like to learn more about credit reports, credit scoring, and what it means to you, I encourage you to explore the wealth of material offered on the Bills.com Credit page.
I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Merrill, MI | May 05, 2011
May 06, 2011
Do not close the account! If you feel tempted to abuse the account, then either cut up the card or stick the card in a container of water and put it in the freezer. If you are not an account abuser, then use the account once ever three months or so for a small purchase, and then pay-off the balance in two months.
One new account (like one bouquet of flowers for a diva) is not going to rebuild your score alone. It takes time, and a variety of new accounts — such as a department store account, a gasoline charge card, a vehicle loan, or a student loan — to broaden your history. A diversity of strong accounts will boost your credit score, much like a variety of gifts will satisfy a moody diva.
Evans, CO | May 19, 2011
May 19, 2011
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April 26, 2009
Since you don't have facebook, please provide us with your location and a valid email address so we can answer it. Without a valid email address,we can't reply. (Go back to login with Facebook)
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