How do you fix a fully paid up credit report and boost scores over a period of time?
I had a few late payments, a few medical bills, credit card bills etc, all now paid up in full.
Few of the collection agencies have promised to report it to the credit Bureau and have them removed from the history.
One bank law suit and few others these are all paid up 5.5 yrs is it true that they might remain for 7 years (of which 5.5 years is already completed)? but they mentioned it will not add any negativity (not sure).
Well, now that all's taken care of.. i need help in gathering up from here, and work towards boosting the score.
I have a car loan of about 600 dollars every month, that i will be paying for another 2 years, three credit cards of 400 dollars credit limit each (capital one, credit one, orchard bank (which is capital one bank now)). But i dont use them much.. but i plan to now, as i was guided by a friend that if i use them at 25% each month and pay on time, it will help with the score. Is that true? Also, closing one of the cards will help.
Plus is it true with the timely payment of car loans will help.
Right now, my score is around 530. In two years we plan to buy a house and i wanted to make sure that i am in good standing ground, in 2 yrs the bad reportings plus the law suit will complete its 7 yrs period.
I have taken help from Lexington law for them to remove any paid in full entries but still showing up. Not sure if i should let them handle this for two months (99 dollars a month, and see how it goes).
What are your suggestions? I am aiming two years, just guide me on what are the right things i should do to boost my score to 700+ with all the options i've mentioned above.