Five Credit Myths You Should Know About

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

MYTH! Closing your credit card account influences the cutting down of the age of your credit account, which is one of the primary decisive factors of your credit rating. Your credit score, therefore, will not improve once you decide to close your credit cards.

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

MYTH! Accomplishing installment debts will not improve your credit score. The detail with influences on your credit rating is not the total amount of money you spent for the debt, but the time you paid off the debt. Actually, credit report agents are only concerned with determining whether you paid for your debt before the deadline or not.

3. Having only one credit score is natural.

MYTH! In reality you can receive up to three credit scores. Each of the top three consumer credit report agencies in the country has its unique means of computing your credit rating. The computations prepared 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 organization responsible for the calculation of your FICO credit scores.

4. If you get a negative marking on your credit report, then you can never remove it.

MYTH! A negative mark, may it be a late payment record or an existing liability item, can be erased from your credit record. You can initiate this by asking for a goodwill adjustment from your lenders or by testifying against the imprecision of your credit report.

5. It is possible to improve credit score through the maintenance of your credit account balance.

MYTH! It is actually the opposite. It is totally fine to retain credit card activity; however, it has no implications on your credit balance. Keeping a profoundly low balance or no balance at all is absolutely one of the most effective means to prolong 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 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 lender.

One of the easiest means to remove a late payment from your credit history is to request a goodwill adjustment from your original loaner. Goodwill adjustment is a process of adjusting your credit report entry from "late" to "current." Requesting goodwill adjustments from the creditors is much easier if your payment records prior to the late payment are very impressive.

2. Bargain a late payment removal by simply availing of the automatic payment services.

Another method that you can use to wipe off that late payment mark from your credit report is to sign-up for automatic payments. Several creditors will help you eliminate the poor entries on your credit account only if you employ their automatic payment service. The bargain is beneficial for both parties: the lender will receive your payments on time and you will finish your fiscal obligations on schedule.

3. Send a formal document stating that the late payment record is, in fact, imprecise.

Disputing the discrepancy of the entries on your credit record is another effective means to wipe off the late payment mark on credit account record. Lenders, because of the huge amount of accounts they manage every day, have the tendency to experience difficulty verifying the details on your credit record. In the event that the creditors fail to justify the precision of the late payment record, then that bad mark in your credit account will be deleted.


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Clear your credit card debt and avoid filing bankruptcy

Clawing to escape a ton of credit card debt?  Getting a lot of calls from collections call centers?  Can't buy a new car or a new wardrobe since your credit limit is reached?  You can try some common yet effective methods of digging out from under that mountain of bills:


Move your credit balance from the card with higher rates to your cards with low rates.  This move enables you to get charged lower interest while waiting on paying off your credit balance.

Convert the credit card which has the heaviest rate into a lower monthly rate card, contact the credit card company, make it clear to them your financial iessues and ask for help with reductions your monthly rate.  Use this technique for your credit cards now.

Completely pay the remaining balance of your high interest plastic, and stop using them.  If balance payoff is not doable, pay what you can.

Approach a veteran credit consolidation specialist and ask credit card debt consolidation avenues you can take.  This is a viable solution to your situation.  Employ their knowledge to profoundly upgrade your finances.





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