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Hi there… I will be refinancing soon. So, I want to increase my credit scores soon. Lucky enough that I paid off the 2nd mortgage two months back! However, I still have 190K on the first mortgage, and about some student loans and credit card debts. As I paid off the second mortgage, will that increase my credit score? I just wanted to see if I should wait for the credit score to get updated before shopping for lenders?

Niicss · Posted: Mon Aug 22, 2011 2:06 am Post subject:

Paying off the second mortgage will definitely have a positive impact on your credit report. However, it might take some time to improve your credit score. It is a known fact that credit scores won't get improved immediately once you pay off an account. So, in my opinion, it will be better to start shopping for lenders immediately.

joshuaheckathorn · Posted: Tue Aug 23, 2011 10:50 am Post subject:

Paying down your credit card debt (revolving credit) will have a greater positive effect on your FICO scores. Your 2nd mortgage was considered an installment loan, so it's not included in your credit utilization ratio and won't have as large of an overall effect on your credit scores.

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