Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Radge70
    • By Radge70 28th Nov 17, 10:55 AM
    • 8Posts
    • 0Thanks
    Radge70
    How quickly will clearing my credit card debts be reflected in any credit searches?
    • #1
    • 28th Nov 17, 10:55 AM
    How quickly will clearing my credit card debts be reflected in any credit searches? 28th Nov 17 at 10:55 AM
    Hi,
    I am making an effort to "prepare my credit files" ahead of a mortgage application. At the moment, I have a horrendous amount of credit card debt but I will be in a position to pay it all off around mid-December. I also have a default on my credit files that will expire (after 6 years) in mid-December too. My plan is to try to get a mortgage agreement in principle as soon as possible after I have cleared my credit card debts and the default record has gone.
    My question is, when will my zero debt / zero defaults show up on any credit searches that are done by mortgage providers? Is it "real time", as in as soon as my credit cards are showing a zero balance then that is what the mortgage providers will see, or is there going to be a time lag depending on when each individual credit card company decides to report the updated balances to the credit agencies? If the latter, does anyone know how frequently the credit card companies update the credit agencies?
Page 1
    • zx81
    • By zx81 28th Nov 17, 11:01 AM
    • 14,397 Posts
    • 15,194 Thanks
    zx81
    • #2
    • 28th Nov 17, 11:01 AM
    • #2
    • 28th Nov 17, 11:01 AM
    Accounts are updated monthly.
    • Radge70
    • By Radge70 28th Nov 17, 11:52 AM
    • 8 Posts
    • 0 Thanks
    Radge70
    • #3
    • 28th Nov 17, 11:52 AM
    • #3
    • 28th Nov 17, 11:52 AM
    thanks zx81. So if, for example, I look at my full Experian credit report, which has an "updated" date for each of my credit cards, then this will be the same date that anyone doing a search on me will also get the latest update? In which case it's not the date my balances are actually cleared that matters, it's the date that my credit card company reports the updates to the credit reference agencies?
    • Candyapple
    • By Candyapple 28th Nov 17, 12:19 PM
    • 2,495 Posts
    • 1,862 Thanks
    Candyapple
    • #4
    • 28th Nov 17, 12:19 PM
    • #4
    • 28th Nov 17, 12:19 PM
    thanks zx81. So if, for example, I look at my full Experian credit report, which has an "updated" date for each of my credit cards, then this will be the same date that anyone doing a search on me will also get the latest update? In which case it's not the date my balances are actually cleared that matters, it's the date that my credit card company reports the updates to the credit reference agencies?
    Originally posted by Radge70
    Yes. It all depends on when your lenders report the balances back to the credit reference agencies. Some do it monthly, some do it every 2 months. You could clear your balances in mid December and it won't reflect as being cleared until your February 2018 update if that lender reports it then.

    The free versions to check your credit files are below:
    Experian: www.moneysavingexpert.com/creditclub
    Equifax: www.clearscore.com
    Call Credit: www.noddle.co.uk
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Radge70
    • By Radge70 28th Nov 17, 2:10 PM
    • 8 Posts
    • 0 Thanks
    Radge70
    • #5
    • 28th Nov 17, 2:10 PM
    • #5
    • 28th Nov 17, 2:10 PM
    That's great Candyapple, thanks. I'm actually subscribed to all of the free ones and have just been checking back on all of the historic reports I had saved and I noticed that there's actually no set date as to when the lenders will report! For example one will report to Experian (or Martins credit club) on the 5th one month and then the 20th the next month. And the same lender is reporting to Noddle on the 1st one month and the 15th the next. I'd assumed it would have all been automated, thus keeping it consistent, but it's not.
    Bit of a tricky situation for me because I really need to get the mortgage agreement in principle as soon as possible and it seems impossible to be able to work out when all of the updates will take effect on my actual credit files.
    Does anyone have any views as to whether it's best to wait for 2 months after paying off all the balance or maybe wait just one month and risk having a decline on my credit file. Would it make a huge difference if I were to have a decline and then applied again a month later once I was certain all my balances were clear. I actually have a house in mind so hanging around might mean I lose it.
    • Candyapple
    • By Candyapple 29th Nov 17, 11:29 AM
    • 2,495 Posts
    • 1,862 Thanks
    Candyapple
    • #6
    • 29th Nov 17, 11:29 AM
    • #6
    • 29th Nov 17, 11:29 AM
    You can get an agreement in principle done now, they are usually soft searches so won't affect your history. it's the actual mortgage application that is the hard search. If you have a house in mind then don't waste time and do it now - even if you had to make the mortgage application within the next month most lenders upon seeing that your balances aren't showing as cleared on the CRAs will ask you to clear them before completion and will ask to see a credit card statement showing this.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • AWPTheo
    • By AWPTheo 29th Nov 17, 6:07 PM
    • 10 Posts
    • 5 Thanks
    AWPTheo
    • #7
    • 29th Nov 17, 6:07 PM
    • #7
    • 29th Nov 17, 6:07 PM
    I think the maximum time they take to update is 3 months, but most are done in a month as said before. So if you're paid off in December, it should all show as cleared by March.

    Not sure if that helps, but just my experience as on the credit boosting journey too!
    Debts Nov 2017: £1,855.46 £1,835.46
    Savings Nov 2017: £400

    2018 Goal: Save £1200

Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

5,028Posts Today

4,382Users online

Martin's Twitter
  • Have a lovely weekend folks. Don't do anything (fiscally) that I wouldn't do!

  • RT @thismorning: With his last deals of the year, @MartinSLewis wishes us all a 'very merry Christmas, a happy Hanukkah and a wonderful and?

  • RT @stoneygran: @MartinSLewis I furtively used a pub toilet last night before getting on the bus and felt really guilty!

  • Follow Martin