In 2006, I paid over $10,000 to different creditors to settle out my credit card debt. I now have 7 negative items on my credit report, and 3 positive ones (1 cc that has never been late, and 2 student loans). I do understand that it will take time to improve my credit score but couple of things i wanted to ask:
1. My Equifax score is 57 points higher than my Experian score...is that normal? although both are not good.
2. I am hoping to buy a condo in 2-3 years from now. Would my score rise if i keep making payments on time to my student loans, and buy like groceries etc on my open credit card and pay it off in full each month?
3. I am also considering a Secured Credit Card. How would another entry into my credit report affect my credit score?
Equifax Score and Experian Score Vary by a large amount...Is it normal? Mine is off by about 40 points between the 3 reporting companies so I think that%26#039;s normal.
Yes, continuing to pay your student loan on time will help. If you noticed when you looked at your credit report, all your student loan payments are there so paying on time will help a lot. It will also reduce your debt ration which helps.
The negative items will drop off after 7 years. Each year that goes by with no new negatives will help your score so in 2 to 3 years when you%26#039;re ready to buy your home, you should see a much higher score as long as you don%26#039;t put any more debt on there or make late payments.
I don%26#039;t think you need a secured card if you already have a credit card. Just make sure you pay the balance every month. Don%26#039;t apply for a bunch of different cards. Every time you apply for something, a query hits your credit report. Most of the time, it%26#039;s no big deal as it%26#039;s temporary but if you apply for a bunch of cards, it can significantly lower your score. A secured card wouldn%26#039;t hurt you. I just don%26#039;t know that it would help all that much.
Equifax Score and Experian Score Vary by a large amount...Is it normal? 57 is not a significant difference since ratings run from 200 to 760. Also each bureau have their own criteria of interpretation to some degree. Both options 2 and 3 will help, but only if you are faithful about your payments being on time. Also length of time on job and permanent address weigh heavily. Hint: It is easier to get credit on %26quot;repossessable, necessary items%26quot;... ie; a washer vs a stero...than frivolus items.
Equifax Score and Experian Score Vary by a large amount...Is it normal? As long as everything is correct it should be fine. Creditors look at the average of the three credit reporting services.
The only thing you can do to improve your credit is to always pay your bills on time. As far as using a credit card to shop for groceries and paying it off monthly it will help your credit score. Something that will hurt your credit score is applying for a lot of loans. Everytime a creditor looks at your credit score it is noted by the reporting service.
The new credit card should help you, as long as you keep up on the payments.
If you are good with your credit for the next two years there is no reason you won%26#039;t be able to by the condo.
Good Luck
Equifax Score and Experian Score Vary by a large amount...Is it normal? To answer your questions in order.
1. Yes a large point spread between the three credit bureaus is not uncommon. This is caused by the fact that not all banks report to all bureaus and the fact that each bureau has their own method of calculating your score.
2. Yes this would help raise your score.
3. Yes this would also be a good idea. Another positive line of credit never hurts. You will need to use this one just like your other one and pay it off say 90 percent every month.
Equifax Score and Experian Score Vary by a large amount...Is it normal? here are a few things to keep in mind.
1. Scores will always cary because not all creditors report to all three bureaus.. The credit score is a formula based on what information is reported to that specific creditor.
2. If you keep making payments on time, it should go up, but it may not go up that quickly. Many creditors only report credit information once a quarter.
3. If you allready have a non-secured credit card, don%26#039;t go through the hassle of getting a secured card. The fees on a secured card will eat you alive, and it isn%26#039;t worth the few points it may raise on your credit score.
Equifax Score and Experian Score Vary by a large amount...Is it normal? yes it will take some time for your credit score to go up, but keep making your payments on time and if u get a secured card same thing keep up with the payments, and by 2-3 years from now your credit report will be looking good.
ps for the 7 negative items it will take 7 years from the date u paid them off..
