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Ryan Baker’s Mortgage Blog

Happy Friday everyone, and happy 3 day weekend (for some of us)! I have a response to a readers question for you guys: How long does “bad credit” stay on your credit report after you’ve paid it off?

Well the simple answer is usually 7 years. All of your accounts remain on your credit report, whether they are opened, closed, or have a 0 balance, for up to 7 years. So your payment history can impact your score event after you have paid it off. Foreclosure or Bankruptcy usually takes up to 10 years until it is removed from your report. Judgments and Tax Liens can take even longer depending on how they were handled.

If you have recently done something that should raise your credit score, like pay off a debt, you can get a “rapid rescore”. Many creditors offer this service, and it can be completed through your mortgage broker. Depending who you go through it can be costly, anywhere from $100-$300. Some loan officers (like myself) could credit you the money for this service if and when your loan is complete.

You can use the normal dispute method by contacting the bureau(s) directly if you aren’t in a hurry…this usually takes 4 to 6 weeks to be completed. But the Rapid Rescore would be done in days… not weeks. Your broker can analyze your score and tell you if your recent changes would raise your score, and also how much it “should” raise it. This way you would know if it was worth your money to do a rapid rescore. If it is the difference between getting approved for a loan or lower rate, then it could save you thousands in the long run.

In order to do a rapid rescore, you would need to provide documentation from the creditor explaining your recent change, which should be on company letterhead, and includes your name, account number, etc…

If you have any question regarding today’s blog or any mortgage related, feel free to contact me at or 805-540-0866.

Written by Keith Byrd - Go to Keith's Website/Profile