Most Common Credit Myths

1.  Credit ratings are improved if you closed your credit card accounts.

NOT TRUE! Closing your credit card influences the cutting down of credit age, which is also one of the biggest determining factors of your credit score. The credit scores on your records, therefore, will not increase if you do opt to close your credit card accounts.

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

NOT TRUE! Accomplishing installment debts will not improve your credit score. The factor with effects on your credit rating is not the amount of money you spent for the loan, but the time you paid back the debt. The truth is, consumer credit report officers are only interested in finding out whether you paid for your debt before the deadline or not.

3. Only one credit score is issued to you.

NOT TRUE! Actually, you can obtain a maximum of three credit scores. Each of the three leading credit reporting agencies in the country has its own method of calculating your credit rating. The computations achieved by the three agencies result to three credit scores with very little discrepancies. All three credit scores are accepted by the Fair Isaac Corporation (FICO), which is the organization that is responsible for the preparation of your FICO credit scores.

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

NOT TRUE! A negative mark, may it be a late payment record or an existing debt account, can be erased from your credit record. You can initiate this by asking for a goodwill adjustment from your lenders or by reporting the inaccuracy of your credit report.

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

NOT TRUE! It is actually the opposite. It is absolutely fine to maintain credit card activity; however, it has no effect on your credit balance. Maintaining a profoundly low balance or no balance at all is absolutely one of the best means to maintain an acceptable credit rating and improve it.


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Three Simple Ways to Remove Late Payment Markings from Your Credit Account

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 ways you can conveniently use to delete the late payment marks from your credit report:

1. Ask a goodwill adjustment from your first lender.

One of the simplest means to remove a late payment from your credit account is to request a goodwill adjustment from your original lender. Goodwill adjustment is a practice of changing your credit report marking from "late" to "current." Requesting a goodwill adjustment from your lenders is rather easy if your payment records before the late payment are relatively satisfactory.

2. Negotiate a negative marking wipe off by simply signing up for automatic payment services.

Another technique you can use to wipe off that late payment entry from your credit report is to sign-up for automatic payment services. Some lenders will help you erase the poor entries on your credit account only if you support their automatic payment service. The deal is advantageous to both parties: the lender will receive your credit payments on time and you will accomplish your fiscal obligations on schedule.

3. Send a formal document declaring that the late payment entry is inaccurate.

Disputing the inaccuracy of the items on your credit record is also a helpful technique to get rid of the late payment entry on credit account record. Loaners, thanks to the overwhelming number of credit records they manage every single day, have the tendency to have a difficult time justifying the items on your credit report. If ever the lenders fail to affirm the definitude of the late payment record, then that bad mark in your credit account will be removed.


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Eliminate your charge card balance without bankruptcy

Trying to be free of a mountain of credit card debt?  Getting endless waves of calls from debt collection companies?  Blocked from buying a new car or a new sound system because your credit limit is reached?  You can try some common and effective steps of climbing out from under that pile of credit card bills:


Move your credit balance from the credit card with the highest rate to your cards with a lower rate.  This tactic enables you to get charged lower interest while moving towards discharging your balance.

Change the account that has the biggest interest to a low interest card, contact the card provider, show them your money iessues and ask for aid with reductions your interest rate.  Use this strategy for all your cards soon.

Completely pay the existing balance of your higher rate cards, and quit using them.  If full balance payment is not doable, take off as much as possible.

Contact a experienced credit consolidation consultant and look into credit card debt consolidation avenues you can exercise.  This is a viable solution to personal credit problems.  Employ their services to completely upgrade your personal finances.





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