How long after you pay down your credit cards before your credit score increases?
As I understand, your credit score is partly calculated by how much you owe and your available credit. If an individual had no late payments on any cards, total available credit of 20K and 6K in debt, if that 6k is paid off right away, how long would it take for the score to go up?
A couple of months to a year
Immediately upon the revised balance being reported to the credit bureau.
Debt balances influence your credit scores predominantly through a factor call “utilization” — how much of each credit line is in use, and how much of your revolving lines across the board are in use.
Strong utilization ratios are below 30% on each individual card and below 10% on all revolving accounts. Lower ratios are better.