Improving Credit score
Question: I am trying to improve my credit score so I can qualify for a loan with low interest rate. In February/March of this year, I got my credit reports. There were some collection items on the reports (mainly medical) that happened while I was layed off and going through a divorce. I paid off all the items. Today I went and checked the report, some of them have improved. The Equifax credit score did not change. Why is that?
Also, some of the negative items that I paid off, did not show as “paid off” in the TransUnion report. Why is that? How long do the credit agencies take to update such items?
What do I need to do to improve my credit score? I get conflicting advice as for the use of credit cards to improve credit score. I have a few credit cards. I use only one them so that it is easier to track. Do I need to use all the cards and maintain low balances on all of them?
Thank you in advance for any advice or help.
Answer: Not sure about how it works in the states, but I had some credit problems (due mainly to someone taking out a contract mobile phone in my name and not paying the bill), and there is a way of adding a notice of correction to your credit report. In alot of cases, it does bugger all good, but some companies do actually read the report (assuming that their sales staff have the basic level of human intelligence to do so :p) and it will make a difference. The worst thing you can do is apply for loads of different things, cos then it looks like you’re chasing credit and they’ll put the hate on you. hard.
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