Ask Experts Questions for FREE Help !
    BIGBOPPER's Avatar
    BIGBOPPER Posts: 351, Reputation: 28
    Full Member

    Dec 3, 2008, 10:43 PM
    Curious about mortgage affecting credit rating.
    My partner has finally paid off her house this month. Yay! What I am curious about, is that now that she is no longer in debt, and in fact paid the note early, will her credit rating go up?
    We are not thinking about re financing or anything like that, but I know that her car insurance is based on her credit score, and so is her credit card. It would be neat if she could re-negotiate those rates, and save some money there.
    Thanks in advance.
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307

    Dec 5, 2008, 10:20 AM

    Yes, her credit score should indeed go up, as her debt has been reduced. However, if her principal balance was already pretty low before paying it off then there may not be too much of an impact. Also, it may take a few months to hit her credit report.

    Also, although you don't mention this, if she has a home equity line of credit open this will reduce her score, even though she may not have borrowed any money against the line of credit. People are often tempted to open a line of credit "just in case," but it can hurt your credit score.
    BIGBOPPER's Avatar
    BIGBOPPER Posts: 351, Reputation: 28
    Full Member

    Dec 5, 2008, 03:26 PM

    She does not have the equity opened. She owed about 6 grand on the note, when an insurance settlement from hurricane Wilma finally went through, leaving her with a final payment of about $350. But I do see your point. So she should give it a couple of months, do the free credit report thing and then call the credit card company and the auto insurance company?

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Overseas Credit Card debt collection affecting credit rating in Canada? [ 1 Answers ]

I do live in Canada and I have an outstanding CC debt with a world-renown bank in the UK, but for reasons beyond my control I am unable to make overseas payments. It is not a matter of not trying or wanting to pay, but other reasons are involved... How could or will non-payment of a...

Credit rating [ 4 Answers ]

My Grandson and his girlfriend have just tried to get a mortgage and have been refused because they have no credit rating . Can anyone tell me how to start to get credit rating .

Old medical bills affecting my credit. [ 2 Answers ]

I have old medical bills on my credit report that are affecting my credit. I can't get a loan or a credit card. I don't make very much money but want to be able to remove this collections from my record. Someone told me that almost no one pays medical bills and that they go away but I want them...

Credit Against Payable Not Affecting P&L [ 1 Answers ]

Invoice received in 2006. No entry that payment made in 2006. 2006 Closed. In 2007, wish to remove payable from the books. Can an entry be made that removes the payable, affecting balance sheet only, and not P&L?

Renewal of Judgment affecting credit? [ 1 Answers ]

I had a debt go bad against me in 1993. In 1995, the finance company got a judgment against me. I decided to wait it out in hopes that it wouldnt' be renewed as it was a very large sum. Unfortuntely, it was renewed against me last month and it was done 2 months before it was required to be...

View more questions Search