Just because you pay off a debt doesn’t mean that your credit score will instantly get better. Here’s why it might take some time.

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Matt Garcia and I had a little conversation recently after we finished filming another video, and we wanted to bring that to you today. When you pay off a collection or a mortgage and you’re expecting your credit score to increase significantly because of it, that might not happen as quickly as you’d like.

 

FICO 2, 4, and 5 are very slow-healing model of credit. Just because we pay something off doesn’t mean that the impact on your score will be immediate. It stops the bleeding from the score getting worse, but it can take often months or years to heal. 

 

"It might not happen as quickly as you’d like."

 

When something is negative on FICO 2, 4, and 5, the impact is there. We advise folks to talk to us first so we can often make an accurate game plan for your situation in order to pay off your debts and improve your scores. Matt is a wizard at doing this. 

 

It’s one of those things that you don't realize is impactful to your credit report. It’s Matt’s job to help you avoid credit repair companies and do things the right way, so you can increase your score to get the best possible financing on a home down the line.

 

We’ve got a lot of information and knowledge we’ve picked up over our decades in the business. If you have any questions about credit repair, real estate, or anything else, don’t hesitate to give us a call or send us an email. You can contact Matt here. We would love to hear from you as well.