Five Credit Myths You Should Know About

1.  You can improve your credit score by canceling your credit cards.

FALLACY! Closing your credit card adds to the shortening of the age of your credit account, which is included in the biggest bases of your credit rating. The credit scores on your records, for that reason, will not improve if you do choose to cancel your credit accounts.

2. Credit scores are increased once you repay your installment loans.

FALLACY! Accomplishing installment debts will never improve your credit score. The detail that has effects on your credit score is not the amount you spent for the loan, but the exact date you paid down the loan. In fact, credit report agents are only focused on identifying whether you settled your debt according to schedule or not.

3. Having only one credit score is natural.

FALLACY! In reality you can get up to three credit scores. Each of the top three credit report agencies in the country has its own means of calculating your credit score. The calculations achieved by the three agencies result to three credit scores with minute dissimilarities. All three credit scores are recognized by the Fair Isaac Corporation, which is the institution responsible for the calculation of your FICO credit scores.

4. You cannot erase a negative entry in your credit report before the seven-year requirement expires.

FALLACY! A bad mark, may it be a late payment listing or an existing liability listing, can be deleted from your credit record. You can start this by asking for a goodwill adjustment from your lenders or by disputing the imprecision of your credit report.

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

FALLACY! It is actually the opposite. It is totally all right to retain credit card activity; however, it doesn't affect your account balance. Keeping a very low balance or no balance at all is actually one of the best means to prolong an acceptable 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, most 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 ways that you can freely use to eliminate the late payment marks from your credit report:

1. Request a goodwill adjustment from the first creditor.

One of the easiest techniques to erase a late payment from your credit history is to ask your original lender for a goodwill adjustment. Goodwill adjustment is a practice of adjusting your credit marking from "late" to "current." Requesting goodwill adjustments from the lenders is relatively easy if your payment records prior to the late payment are somewhat impressive.

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

Another technique you can use to delete the late payment record from that credit account record is to register for automatic payments. Many lenders will help you erase the negative markings on your credit report only if you support their automatic payment service. The compromise is advantageous to both parties: the creditor will obtain your payments on time and you will complete your fiscal responsibilities on schedule.

3. Pass a formal claim imposing that the late payment marking is inaccurate.

Disputing the inexactness of the items on your credit history is another great way to erase the late payment record on your credit account. Creditors, because of the overwhelming number of accounts they handle every single day, have the tendency to have a difficult time verifying the details on your credit account. If ever the lenders fail to prove the accurateness of the late payment record, then that poor marking in your credit report will be erased.


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Clear up credit card debt load and avoiding filing bankruptcy

Clawing to escape a mountain of credit card bills?  Hassled by endless waves of unwanted calls from debt collection call centers?  Can't get a new car or a new house appliance because your credit is maxed out?  Here are some common but effective methods of climbing out from under that hill of overdue notices:


Convey your balance from the credit card with the highest rate to your cards with the lowest interest rates.  This move enables you to enjoy lower interest while moving towards eliminating your remaining balance.

Change the account with the top interest to a lower rate card, phone the credit company, tell them your money difficulties and ask for help with points off your monthly rate.  Try this method with your credit cards soon.

Pay off the leftover balance of your high interest cards, and quit using them.  If full balance payment is impossible, pay as much as you can.

Approach a expert debt consolidation counselor and ask credit card debt consolidation avenues you can use.  This is a comprehensive alternative to personal credit problems.  Take advantage of their knowledge to profoundly beef up your finances.





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