Question:

I just recently cleaned up my credit. How long do I need to wait to start applying for credit?

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During my annual free credit report check, I found out I had a collection from Verizon Wireless. I paid that off in full on May 19th. It has been over 30 days since I cleared it.

I am in dire need of a washer and dryer for my new rental house so I want to shop around, but I will have to put it on credit. Other than that collection, everything on my credit is superb.

My question is:

How long will it take for that collection payment to make all my credit reports clean? 30 days? 60 days?

Also, a little side question: Will that collection hurt my credit from now on even though I paid it off in full? Will it still remain on there but just say that I paid it?

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5 ANSWERS


  1. You should find a laundromat near your new home,,,,,don't borrow any money for at least 2 years.


  2. Coincidently I too have a collections from Verizon Wireless on my report that is paid in full.....and sorry to say it will hurt your credit until it fails off even though you paid it this can usually be for 7 years ...and yes it will say you paid it to all 3 creit bureaus however this can take time as well somewhere between 30-90 days (mines took 30 days)

    On a brighter note I have been able to get credit with this collections on my file....potential creditors may ask "what happen?" to allow you to explain your situation when reviewing you for future credit --in my case with Verizon it was contract cancellation

    As far as how long you should wait before applying for credit I would say at least 3-4 months---that way your collection can have time to show as paid on your credit file

    Good Luck with the washer & dryer

  3. You may not be approved for credit if you apply now. You have to have good payment history for atleast two years. Applying for credit would create "hard enquiries" that will drop your credit score furthur. I would also advice using a laundromat  or buying used washer and dryer by paying cash for them. It is good for your credit in the long run.

  4. Don't jump into debt so quick, use public Laundromat and save up your money. It also takes time for the pay off item to reflect on your report - like 7 years.

  5. It will probably not help your credit at all.  Collections paid are still collections.  You may see a 5 point increase maximum.  What you need to do now is try to dispute that item with the credit agencies.  Now that it is paid there is a chance that they will not verify it.  A good way to get positive results for disputing is using this method http://www.creditforums.org/f13/got-my-r...  it gives specific exaples how to get the best results.  And best of all it is posted on a free forum for credit repair.

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