How Long After a Bill Payoff Does It Take to Show on a Credit Score?

Not paying off your bills will damage your credit score. Negative information on your credit report will raise red flags with lenders and credit card companies. This could result in unattractive interest rates and denial of credit due to the risk you present. However, paying off your bills will help to restore your credit score. After paying off a delinquent bill, you can see changes on your credit score as soon as after one billing cycle.

Billing Cycles

Most billing cycles are one month, whether it be your cable, credit card, cell phone or Internet bill. If you are delinquent on any of these accounts, that information is passed on to credit reporting agencies. You are considered delinquent after 30 days of non-payment. When your bill is paid off, your account is updated. This new information is shared with the credit bureaus. Your previously delinquent account will be updated to state that the account is paid. It also will include a notation about how long the bill was past due. Your credit score will be updated as a result of this new information.

Credit Report and Score

You can get a free copy of your credit report through annualcreditreport.com to confirm that your accounts have been updated. However, the report does not reveal your score. A variety of companies provide access to your credit score for a fee. Your score is based upon your credit history. Under the heading of "Potentially Negative Items," your credit report will list the delinquent account and that it has been paid off. If it was paid off through a settlement with the company or a collection agency, this also will be noted. Furthermore, this information will stay on your credit history for seven years under the Fair Credit Reporting Act. Your score will improve even more after that time if you do not accumulate additional negative marks.

Impact on Score

Your bill payment history accounts for 35 percent of your credit score. The amount of debt you carry is another 30 percent. If you pay your bills in a timely manner, your credit score will improve because you are demonstrating your financial ability and responsibility. If you pay off late bills, you can repair some of the damage. How much your score improves depends on how many other bills are late and how much outstanding debt your are carrying, among other factors. Your credit score falls between 350 to 850, with the higher mark being better.

Error-Free Reporting

You are entitled to a free credit report from each of the three credit bureaus every year by visiting annualcreditreport.com. Request a copy to ensure that it is up to date and accurately shows your bill payments. Take the opportunity to ensure all other information is accurate. If your bill payoff has not been reported to the credit bureau, report the error right away so that your credit score is updated as well. The Federal Trade Commission's website has details on reporting errors.