Five Most Common Credit Myths

1.  Canceling credit cards helps increase credit scores.

NOT TRUE! Canceling your credit card account adds to the shortening of credit age, which is included in the primary clinchers your credit rating. The scores on your credit report, therefore, will not improve if you do opt to cancel your credit accounts.

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

NOT TRUE! Settling installment loans will not increase your credit score. The factor with implications on your credit score is not the total amount of money you paid for the loan, but the time you settled the debt. In fact, consumer credit report officers are only concerned with verifying if you paid for your balance on time or not.

3. You can only have one credit score.

NOT TRUE! Actually, you can receive as many as three credit ratings. Each of the three leading consumer credit reporting agencies in the country has its unique means of calculating your credit score. The calculations prepared by the three companies translate to three credit ratings with slight discrepancies. All three credit ratings are acknowledged by the Fair Isaac Corporation (FICO), which is the institution accountable 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.

NOT TRUE! A bad marking, whether it is a late payment record or an existing loan item, can be removed from your credit report. You can initiate this by requesting a goodwill adjustment from your creditors or by reporting the imprecision of your credit details.

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

NOT TRUE! It is actually the opposite. It is absolutely all right to retain credit card activity; but it has no implications on your account balance. Maintaining a profoundly low balance or no balance at all is actually one of the best means to prolong a considerable credit score 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 ways you can conveniently try to eliminate the late payment marks from your credit report:

1. Ask a goodwill adjustment from the original lender.

One of the simplest methods to erase a late payment from your credit report is to request a goodwill adjustment from your original lender. Goodwill adjustment is a process of changing your credit marking from "late" to "current." Requesting adjustments from the creditors is much easier if your payment records prior to the late payment are very impressive.

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

Another way that you can use to delete the late payment record from your credit report is to register for automatic payments. Some creditors will help you get rid of the late payment records on your credit report only if you promise to use their automatic payment service. The compromise is actually advantageous to both: the lender will receive your payments on time and you will complete your fiscal duties on schedule.

3. Pass a formal document declaring that the late payment marking is inaccurate.

Questioning the inexactness of the details of your credit history is another useful means to wipe off the late payment record on credit account record. Creditors, due to the large number of credit records they handle every single day, have the tendency to have difficulty confirming the entries on your credit report. If the creditors fail to prove the preciseness of the late payment record, then that negative mark in your credit record will be wiped off.



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Eliminate your credit card payments and avoid bankruptcy

Fighting to get out of a ton of credit card debt?  Getting a lot of calls from debt collection call centers?  Blocked from buying a new car or a new sound system because your credit is maxed out?  You might want to look into some common but effective steps of digging out from under that mountain of bills:


Shift the balance of your credit card from the card with a high rate to your cards with a lower rate.  This move allows you to enjoy lower interest while moving towards eliminating your remaining balance.

Convert the card which has the biggest interest rate to a lower monthly rate card, phone the card provider, describe to them your money troubles and ask for aid with reductions your credit card interest.  Use this strategy for all your cards soon.

Pay off the existing balance of your high interest credit cards, and stop using them.  If balance clearing is not feasible, take off as much as possible.

Get in touch with experienced credit consolidation specialist and inquire credit card debt consolidation approaches you can take.  This is an effective option to personal credit problems.  Employ their expertise to drastically improve your financial bottomline.





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