When Do Paid Up Accounts Get Updated in the Credit Report

Generally you do not have to worry about when the creditor reports your payment to the credit bureaus. But if you are trying to improve your credit rating by paying off old debts and un paid account, then you might be curious as to how i will take for the account status to be updated in your credit report. Specially, if you are trying to improve your credit rating for a specific purpose like applying for a home or auto loan.

If unpaid accounts had been reported to your credit report and you have since then made the pavement and brought them to a current status then you will have to wait till the lender reports the new status of the account to the credit bureau to have them updated in your credit history.

Lender reports to the credit bureau at the end of each billing cycle.  Usually the billing cycle is for a period of 30 to 45 days.  If you made the payment at the beginning of the billing cycle in you will probably have to wait for the next 30 to 45 days before the information is updated in your credit report.  It is generally advised for consumers to wait for a full completion of two billing cycles which is typically 60 days before checking their credit report for the updated information.

You should also know that even after the credit report has been updated with the fresh account status, your credit score may not immediately show any improvement.  In fact it may decrease at first before increasing to reflect the paid status of your credit accounts. 

This is because whenever changes are made into credit history it is unclear to the credit calculation model whether the changes for positive or negative.  Only when the positive changes have stabilised and the payments continue to come that it becomes evident that the changes were positive.  A credit scoring model does not consider individual factors on an individual basis solely.  It balances it with other information being reported on the credit report.  So an increase in credit limit is checked against whether you have undertaken a lot of extra debt suddenly.  Only when the credit scoring model sees the pattern of most of information being reported over the period of a couple of months does it benefit the credit score of the consumer.