Five Most Common Credit Myths

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

FALLACY! Closing your credit card adds up to the cutting down of your credit account's age, which is one of the primary determining factors of your credit rating. Your credit rating, as a result, will not improve once you choose to close your credit card accounts.

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

FALLACY! Paying off installment liabilities will not improve your credit score. The detail with effects on your credit rating is not the total amount of money you spent for the debt, but the particular day or time you settled the debt. Actually, consumer credit report agents are only interested in verifying even if you paid for your loan before the deadline or not.

3. Only one credit score is issued to you.

FALLACY! The truth is, you can have as many as three credit scores. Each of the three leading credit report agencies in the country has its own means of preparing your credit rating. The data achieved by the three companies translate to three credit scores with slight dissimilarities. The three credit scores are acknowledged by the Fair Isaac Corporation (FICO), which is the institution accountable 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.

FALLACY! A negative mark, may it be a late payment item or an existing debt listing, can be deleted from your credit record. You can initiate this by requesting a goodwill adjustment from your lenders or by disputing the imprecision of your credit data.

5. Credit scores are increased if you hold your credit account balance.

FALLACY! It is actually the opposite. It is totally okay to have credit card activity; however, it has no effect on your credit card balance. Keeping a remarkably low balance or no balance at all is really one of the most effective ways to maintain a good credit rating and improve it.


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Three Effective Techniques that Will Help You Get Rid of the Late Payment Records on 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 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 that you can freely use to eliminate those late payment marks from your credit report:

1. Request a goodwill adjustment from the first loaner.

One of the simplest techniques to remove a late payment from your credit account is to request a goodwill adjustment from your original loaner. Goodwill adjustment is a process of modifying your credit report entry from "late" to "current." Asking for a goodwill adjustment from the lenders is relatively easy if your payment records prior to the late payment are considerably satisfactory.

2. Settle a removal by availing of the automatic payment service.

Another way you can use to wipe off that late payment marking from that credit account is to register for automatic payments. Some lenders will help you erase the negative entries on your credit account only if you promise to avail of their automatic payment service. The bargain is actually advantageous to both parties: the loaner will get your payments on time and you will finish your fiscal responsibilities on schedule.

3. Raise a claim declaring that the late payment marking is really inexact.

Disputing the imprecision of the items on your credit record is also a great technique to delete the late payment marking on your credit account. Loaners, thanks to the huge amount of credit reports they manage every day, have the tendency to experience a difficult time justifying the details on your credit report. If ever the lenders fail to affirm the precision of the late payment record, then that poor marking in your credit account will be deleted.


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Wipe out your credit card debt and avoid filing bankruptcy

Fighting to escape a pile of credit card collection notices?  Harassed by tons of phone calls from debt collection call centers?  Can't get a new truck or a new wardrobe because your credit is maxed out?  Here are some of the common yet proven methods of getting out from under that pile of credit card bills:


Convey your account balance from the credit card with high rates to your credit card with the lowest interest rates.  Doing this enables you to pay lower interest as you work on clearing your remaining balance.

Convert the card with the biggest rate into a lower interest rate card, contact the card provider, tell them your financial difficulties and solicit their help with reductions your credit card interest.  Do this method with your credit cards soon.

Pay off the existing balance of your high interest credit cards, and stop using them.  If full balance payment is not possible, pay down as much as possible.

Get in touch with knowledgable debt consolidation consultant and inquire credit card debt consolidation options you can exercise.  This is a comprehensive option to your situation.  Use their services to drastically upgrade your personal cashflow.





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