Wednesday, 12 February 2020

How Long Will It Take My Credit Report To Update

Credit Report To Update

Today I want to cover how long it takes for your credit report to update once you resolve a collection account. There's a whole bunch of different ways that you can end up in collection, credit card is very common, medical bills, etc, but when you go to resolve an old debt that is hurting your credit, you definitely want to see that improve, that's one of the purposes that we go back and resolve olds debt.


It Takes Upto 30 Days For Your Credit Report To Updated

The time it takes can vary a little bit depending on the situation. Normal timelines are about 30 days and let me give you an example, let's say for a moment that you stopped paying on your Chase credit card and a year went by. You resolve the account by that time it's out with the debt collector and once you resolve it, they're going to usually wait in my experience about 2 weeks after the payment clears, to then assume that it's settled. 

They may not be on a daily update to the credit bureaus. They may be on every other week or every week, kind of batch updating with the credit bureaus, and everybody is a little bit different, there might be a bank that doesn't do batch updating but once a month a smaller bank probably. Or other situations where the debt collector that is collecting on your medical bill, might not do batch updating once a month. A good safe assumption is waited 2 weeks until after you made the payment. And then count 30 days, so about six weeks is probably the most common timeframe for you to wait and see and then go look at your update.


What Happens Is Your Report Is Not Update After 30 Days

If you go look at your update and it didn't update, what next? There are some other circumstances where it's going to take a little bit longer. Let's say you got sued and there's a judgment against you, but that doesn't mean that you don't need to get it cleared from the public record and updated, and that will then allow you to go out and get a home loan, you might find that you can't get a loan like a refi or a new home purchases approved even though everything else looks great on your credit, you have this old judgment, that's a different process.


  • That has to wait two weeks usually for the payment to clear before they even schedule the motion work to file with the court and they do that 2 to 3 weeks later a whole month gone by, and the court hasn't even been sent the motion, they can sent the motion and then maybe the court doesn't act on that stack of paperwork and but once a week, and then it updates to the court to show that it's resolved satisfied paid judgment and then you can move forward with things like that.

What happens if you're trying to get a mortgage and it's just a normal collection account that's holding you back not a judgment. And that whole 6 weeks time frame that I was talking about earlier and that chase's credit card settle a year later example, that still applies, but it's going to hold you up and you want to try and accelerate that. Depending on your mortgage broker or your lending officer your loan officer the bank, you may have some options for what's called a "rapid rescore" talk to your lender about that, but essentially, you could go to a debt buyer, for example, resolve a debt and get it in writing before you do that, once it's in writing and then you follow through and you pay, you have proof from your bank account that you paid, you can take those two things to your loan officer and they may be able to make progress on your loan even though it hasn't quite updated to your credit report yet.




Those are some of the more common timelines to expect for your credit report to be updated, it almost never going to be an overnight kind of situation, it's almost always going to be at least a minimum of two weeks type of situation and then anywhere on up to two months-ish when you're trying to resolve a judgment.

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