Five Most Common Credit Myths

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

FALLACY! Closing your credit card account adds up to the cutting down of the age of your credit account, which is one of the biggest influences of your credit score. The credit scores on your records, as a result, will not increase once you opt to cancel your credit accounts.

2. Paying back installment loans helps improve credit ratings.

FALLACY! Paying down installment loans will never increase your credit score. The factor that has implications on your credit score is not the total amount of money you repaid, but the exact date you repaid the debt. In fact, credit report officers are only concerned with determining if you paid for your balance on time or not.

3. It is impossible to get more than one credit score.If you receive your credit reports from different agencies, then your credit scores will all look the same.You can only get one credit score.

FALLACY! The truth is, you can have a maximum of three credit ratings. Each of the top three credit reporting agencies in the US has its own means of calculating your credit score. The computations achieved by the three companies result to three credit ratings with slight differences. All three credit ratings are acknowledged by the FICO, which is the organization that is 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.

FALLACY! A poor marking, may it be a late payment entry or an existing loan item, can be erased from your credit record. You can start this by requesting a goodwill adjustment from your creditors or by reporting the imprecision of your credit report.

5. If you hold your credit card balance, then your credit score will improve.You can improve your credit by maintaining your credit card balance.

FALLACY! It is actually the opposite. It is totally all right to retain credit card activity; however, it has no implications on your credit balance. Maintaining a very low balance or no balance at all is indeed one of the most effective means to prolong an acceptable 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 that 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 definitely use to erase late payment marks from your credit report:

1. Ask a goodwill adjustment from the original lender.

One of the simplest ways to erase a late payment from your credit account is to ask your original lender for a goodwill adjustment. Goodwill adjustment is a process of changing your credit marking from "late" to "current." Asking for a goodwill adjustment from the loaners is rather easy if your payment records before the late payment are fairly satisfactory.

2. Settle a removal by signing up for automatic payment service.

Another way you can use to eliminate that late payment mark from that credit account record is to register for automatic payment services. Some loaners will help you eliminate all the negative markings on your credit account only if you promise to avail of their automatic payment service. The compromise actually benefits both parties: the lender will obtain your payments on time and you will complete your financial responsibilities on schedule.

3. Submit a formal claim imposing that the late payment entry is imprecise.

Questioning the imprecision of the items on your credit record is another effective means to wipe off the late payment mark on your credit account. Creditors, thanks to the large number of credit reports they manage every single day, have the tendency to experience difficulty affirming the details on your credit report. If ever the loaners fail to confirm the preciseness of the late payment record, then that bad mark in your credit account will be wiped off.


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Write down credit card balance and avoid bankruptcy

Trying to be free of a pile of credit card bills?  Hassled by a lot of phone calls from debt collection call centers?  Blocked from buying a new vehicle or a new sound system since your credit limit is reached?  Here are some common and useful methods of digging out from under that hill of bills:


Shift your balance from the credit card with the highest rate to your cards with a lower rate.  Doing this frees you to enjoy lower interest while moving towards discharging your balance.

Switch the account with the highest interest to a low interest card, phone the card provider, notify them your financial troubles and ask for aid with discounts your monthly rate.  Try this method for all your cards now.

Completely pay the existing balance of your higher rate plastic, and do not use them.  If full payment is impossible, pay as much as you can.

Get in touch with veteran credit consolidation analyst and inquire credit card debt consolidation avenues you can take.  This is a viable solution to your situation.  Take advantage of their consulting to profoundly improve your financial bottomline.






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