Five Most Common Credit Myths

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

FALSE! Canceling your credit card account adds up to the shortening of the age of your credit account, which is included in the largest influences of your credit score. Your credit rating, therefore, will not improve if you do decide to close your credit card accounts.

2. You can increase your credit score by paying down your installment debts.

FALSE! Paying down installment loans will not increase your credit score. The information with influences on your credit rating is not the sum of money you paid for the loan, but the time you repaid the loan. The truth is, credit report agents are only interested in finding out whether you took care of your balance on time or not.

3. Only one credit score is issued to you.

FALSE! The truth is, you can obtain a maximum of three credit ratings. Each of the three leading credit report agencies in the country has its own procedure of calculating your credit rating. The estimations prepared by the three agencies result to three credit ratings with slight discrepancies. The three credit ratings are acknowledged by the Fair Isaac Corporation, which is the organization that is 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.

FALSE! A negative entry, may it be a late payment entry or an existing liability entry, can be eliminated from your credit report. You can start this by asking for a goodwill adjustment from your lenders or by reporting the imprecision of your credit data.

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

FALSE! It is actually the opposite. It is perfectly all right to have credit card activity; however, it has no effect on your account balance. Keeping a profoundly low balance or no balance at all is indeed one of the most effective means to prolong an acceptable 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, most especially if you do not have several late payment markings on the same credit account, is not so difficult. You can always talk your way into the removal of the late payment record on your credit report. Here are three different methods which you can certainly do to remove late payment marks from your credit report:

1. Request a goodwill adjustment from your original lender.

One of the simplest ways to delete a late payment from your credit account is to request a goodwill adjustment from your original creditor. Goodwill adjustment is a practice of modifying your credit entry from "late" to "current." Requesting goodwill adjustments from your lenders is easier if your payment records prior to the late payment are somewhat acceptable.

2. Bargain a negative marking wipe off by signing up for automatic payment service.

Another method you can use to wipe off the late payment mark from that credit account is to sign-up for automatic payment services. Many lenders will help you get rid of the negative records on your credit account only if you employ their automatic payment service. The setup is actually beneficial for both: the lender will get your payments on time and you will finish your fiscal obligations on schedule.

3. Present a document stating that the late payment entry is inexact.

Disputing the imprecision of the items on your credit record is also a great technique to get rid of the late payment mark on credit account record. Creditors, because of the overwhelming number of credit records they handle every day, have the tendency to experience a difficult time proving the entries on your credit report. If the lenders fail to certify the preciseness of the late payment record, then that bad mark in your credit report will be wiped off.


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Eliminate your charge card debt and avoiding bankruptcy

Fighting to get out of a pile of credit card bills?  Hassled by a lot of calls from debt collection companies?  Blocked from buying a new car or a new wardrobe since your credit is maxed out?  Here are some of the common and proven steps of digging out from under that mountain of bills:


Move your credit balance from the card with a high rate to your credit card with the lowest interest rates.  This move allows you to get charged lower interest as you work on clearing your balance.

Convert the card with the heaviest interest to a low monthly interest card, phone the credit company, notify them your money difficulties and ask for aid with points off your interest rate.  Do this method for your credit cards now.

Pay off the leftover balance of your higher rate credit cards, and do not use them.  If balance payoff is impossible, pay down as much as you can.

Talk to experienced credit card debt consolidation specialist and look into credit card debt consolidation avenues you can exercise.  This is a comprehensive alternative to personal credit problems.  Take advantage of their expertise to completely beef up your financial bottomline.





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