Five Credit Myths You Should Know About

1.  You can improve your credit rating by closing your credit card accounts.

FALSE! Closing your credit card account contributes to the cutting down of your credit account age, which is also one of the primary decisive factors of your credit score. Your credit rating, as a result, will not increase once you opt to close your credit cards.

2. It is probable to improve credit rating through the repayment of your installment debts.If you pay off your installment loans, then your credit rating will improve.

FALSE! Accomplishing installment liabilities will not increase your credit score. The information with effects on your credit score is not the amount of money you paid for the loan, but the particular day or time you repaid the debt. In fact, consumer credit report agents are only concerned with finding out even if you took care of your balance before the deadline or not.

3. You can only have one credit score.

FALSE! The truth is, you can get up to three credit ratings. Each of the three leading consumer credit report agencies in the US has its own process of calculating your credit score. The computations achieved by the three companies translate to three credit ratings with very little dissimilarities. The three credit ratings are accepted by the FICO, which is the institution responsible for the calculation of your FICO credit scores.

4. Negative entries, unless the seven-year requirement is up, are never erased from your credit report.Removing negative entries from your credit report is impossible; especially if the seven-year requirement is yet to expire.

FALSE! A bad mark, whether it is a late payment item or an existing liability account, can be erased from your credit report. You can do this by asking for a goodwill adjustment from your creditors or by disputing the imprecision of your credit data.

5. Holding your credit balance helps increase your credit score.

FALSE! It is actually the opposite. It is perfectly fine to maintain credit card activity; but it has no implications on your account balance. Keeping a very low balance or no balance at all is indeed one of the most effective ways to preserve a considerable credit score and improve it.



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Three Easy Methods to Get a Late Payment Removed From Your Credit Report

Removing a late payment entry from your credit report, especially if you do not have several late payment markings on the same credit account, is not that difficult. You can always negotiate your way into the removal of the late payment record on your credit report. Here are three different methods you can freely try to eliminate the late payment marks from your credit report:

1. Ask a goodwill adjustment from your original lender.

One of the easiest means to get rid of late payment from your credit account is to ask your original loaner for a goodwill adjustment. Goodwill adjustment is a process of fixing your credit record from "late" to "current." Requesting adjustments from your lenders is relatively easy if your payment records prior to the late payment are fairly impressive.

2. Arrange a negative marking wipe off by availing of the automatic payment service.

Another technique you can use to delete that late payment record from your credit report is to register for automatic payment services. Some lenders will help you eliminate all the negative entries on your credit report only if you promise to avail of their automatic payment service. The compromise is beneficial for both parties: the lender will receive your payments on time and you will complete your financial responsibilities on schedule.

3. Raise a formal charge stating that the late payment entry is really inaccurate.

Questioning the imprecision of the details of your credit record is another effective means to erase the late payment record on your credit report. Lenders, due to the vast amount of credit records they deal with every day, have the tendency to experience difficulty confirming the details on your credit report. In the event that the lenders fail to validate the accuracy of the late payment record, then that poor entry in your credit account will be deleted.


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Write down your personal credit card payments and avoiding going bankrupt

Trying to escape a mountain of credit card bills?  Getting endless waves of unwanted calls from debt collection call centers?  Can't get a new car or a new sound system because your credit is maxed out?  You can try some common yet useful methods of getting out from under that mountain of bills:


Move your credit balance from the credit card with the highest rate to your cards with a lower rate.  This move enables you to pay lower interest while moving towards discharging your credit balance.

Change the credit card with the top rate into a low monthly interest card, phone the credit company, notify them your current credit difficulties and solicit their help with reductions your monthly rate.  Use this strategy with all your credit cards now.

Pay off the total remaining balance of your higher rate cards, and quit using them.  If full balance payment is not feasible, reduce as much as possible.

Approach a experienced debt consolidation specialist and ask credit card debt consolidation methods you can exercise.  This is a comprehensive solution to credit issues.  Employ their services to profoundly improve your finances.






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