Five Credit Myths You Should Know About

1.  It is possible to increase credit score through the cancellation of your credit card accounts.If you close your credit card accounts, then your credit score will increase.

FALSE! Closing your credit card account adds up to the shortening of credit age, which is also one of the biggest decisive factors of your credit score. The scores on your credit report, for that reason, will not improve if you do opt to close your credit cards.

2. You can improve your credit rating by settling your installment loans.

FALSE! Paying back installment liabilities will not improve your credit score. The information that has influences on your credit rating is not the total amount of money you paid for the debt, but the exact date you paid off the loan. The truth is, consumer credit report agents are only concerned with knowing whether you paid for your balance before the deadline or not.

3. It is impossible to get more than one credit score.If you receive your credit reports from different agencies, then your credit scores will all look the same.You can only get one credit score.

FALSE! The truth is, you can get as many as three credit scores. Each of the top three consumer credit reporting agencies in the US has its unique way of computing your credit rating. The data formulated by the three agencies result to three credit scores with slight differences. All three credit scores are acknowledged by the Fair Isaac Corporation, which is the institution responsible for the calculation of your FICO 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 marking, whether it is a late payment record or an existing loan entry, can be deleted from your credit record. You can initiate this by asking for a goodwill adjustment from your lenders or by disputing the inexactness of your credit data.

5. If you hold your credit card balance, then your credit score will improve.You can improve your credit by maintaining your credit card balance.

FALSE! It is actually the opposite. It is entirely okay to maintain credit card activity; however, it has no implications on your credit balance. Keeping a remarkably low balance or no balance at all is indeed one of the most effective means to keep a considerable credit rating 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, most especially if you do not have several late payment markings on the same credit account, is not so hard. You can always talk your way into the removal of the late payment record on your credit report. Here are three different methods you can conveniently do to remove late payment marks from your credit report:

1. Request a goodwill adjustment from the original lender.

One of the simplest methods to erase a late payment from your credit account is to ask your original lender for a goodwill adjustment. Goodwill adjustment is a practice of fixing your credit entry from "late" to "current." Requesting a goodwill adjustment from the loaners is easier if your payment records prior to the late payment are fairly impressive.

2. Settle a negative marking wipe off by simply availing of the automatic payment services.

Another way that you can use to delete the late payment marking from your credit report is to sign-up for automatic payment services. Several loaners will help you eliminate the late payment markings on your credit report only if you promise to use their automatic payment service. The deal actually benefits both parties: the lender will receive your payments on time and you will finish your fiscal responsibilities on schedule.

3. Submit a formal claim stating that the late payment record is inexact.

Questioning the inexactness of the items on your credit record is also a helpful way to delete the late payment marking on your credit report. Loaners, thanks to the large number of credit records they handle every day, have the tendency to have a difficult time proving the entries on your credit account. If ever the loaners fail to justify the exactness of the late payment record, then that negative marking in your credit record will be erased.


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Clear credit card debt load without bankruptcy

Trying to get out of a heap of credit card collection notices?  Getting endless waves of unwanted calls from debt collection companies?  Can't get a new car or a new wardrobe since your credit is maxed?  Here are some of the common yet useful ways of getting out from under that mountain of credit card debt:


Convey the balance of your credit card from the credit card with high rates to your cards with low interest rates.  This move enables you to get charged lower interest while moving towards eliminating your remaining debt.

Switch the account with the biggest interest into a lower rate card, phone the credit company, describe to them your financial difficulties and solicit their help with reductions your interest rate.  Do this method with all your cards soon.

Pay off the total remaining balance of your high rate credit cards, and do not use them.  If full payment is impossible, pay down what you can.

Approach a expert credit consolidation counselor and look into credit card debt consolidation methods you can use.  This is a viable solution to your financial problems.  Take advantage of their knowledge to drastically positively change your personal finances.





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