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What happens when you pay off your home loan?

Your mortgage loan on your credit report will be updated to show a status of “Paid.” You will see the mortgage status updated within a billing cycle or two, typically a month or two. If your mortgage loan does not show any late payments, that loan will stay on your credit report as positive history for 10 years from the date it was paid.  Positive history stays on longer than negative history so it will work in your advantage to help you build your credit history.

How long do inquiries stay on your credit report?

Inquiries remain on your credit report for two years from the date of the inquiry. An inquiry is simply a record that somebody has looked at your report. There are two kinds of inquiries, often referred to as hard and soft.

Hard inquiries are the result of your application for credit or services. Hard inquiries are visible to lenders and can affect credit scores because they represent potential new debt which hasn’t been added to your credit report as an account, yet. The effect of an inquiry on credit scores is minimal and only last for a few months.

Soft inquiries are shown only to you and appear on your personal credit report. They include things such as requesting your own credit report, getting preapproved offers and reviews for things like employment or insurance.  They will not affect scores and will also stay on your report for two years. They appear so you have a complete record of who has viewed your credit report.

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Scoped on: 03/15/2016

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