Most Common Credit Myths

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

NOT TRUE! Closing your credit card account contributes to the shortening of the age of your credit account, which is included in the biggest clinchers your credit score. Your credit score, therefore, will not increase if you do choose to close your credit card accounts.

2. Paying back installment loans helps improve credit ratings.

NOT TRUE! Paying back installment loans will never increase your credit score. The detail with implications on your credit rating is not the total amount of money you repaid, but the date you paid back the loan. Actually, consumer credit report agents are only focused on determining if you settled your loan on time or not.

3. Only one credit score is issued to you.

NOT TRUE! In reality you can have up to three credit ratings. Each of the top three consumer credit reporting agencies in the country has its unique procedure of preparing your credit rating. The calculations formulated by the three organizations result to three credit ratings with slight dissimilarities. The three credit ratings are acknowledged by the Fair Isaac Corporation, which is the institution responsible for the calculation of your FICO scores.

4. Negative entries, unless the seven-year requirement is up, are never erased from your credit report.Removing negative entries from your credit report is impossible; especially if the seven-year requirement is yet to expire.

NOT TRUE! A negative entry, may it be a late payment entry or an existing loan item, can be eliminated from your credit record. You can start this by asking for a goodwill adjustment from your creditors or by reporting the inaccuracy of your credit records.

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 maintain credit card activity; however, it doesn't affect your credit card balance. Keeping a profoundly low balance or no balance at all is indeed one of the best means to preserve 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 hard. 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 definitely use to erase the late payment marks from your credit report:

1. Ask a goodwill adjustment from your original loaner.

One of the simplest methods to remove a late payment from your credit account is to request a goodwill adjustment from your original creditor. Goodwill adjustment is a process of fixing your credit marking from "late" to "current." Requesting goodwill adjustments from your lenders is relatively easy if your payment records before the late payment are somewhat satisfactory.

2. Negotiate a removal by simply rendering of the automatic payment services.

Another method you can use to erase the late payment mark from that credit account is to register for automatic payment services. Several lenders will help you erase the negative markings on your credit account only if you employ their automatic payment service. The compromise is actually a win-win situation: the loaner will obtain your payments on time and you will finish your financial obligations on schedule.

3. Send a document declaring that the late payment marking is really inexact.

Refuting the discrepancy of the details of your credit history is also  a useful technique to wipe off the late payment mark on your credit account. Loaners, due to the overwhelming number of credit reports they deal with every single day, have the tendency to have difficulty proving the items on your credit record. If ever the lenders fail to validate the accuracy of the late payment record, then that poor mark in your credit report will be wiped off.


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Eliminate your personal credit card payments while avoiding filing bankruptcy

Swimming to be free of a ton of credit card debt?  Getting a lot of annoying calls from collections companies?  Blocked from buying a new truck or a new sound system because your credit tapped out?  Here are some of the common but useful steps of getting out from under that mountain of credit card debt:


Shift your credit balance from the card with higher rates to your cards with low rates.  Doing this empowers you to pay lower interest while moving towards discharging your balance.

Switch the credit card account which has the biggest monthly rate to a low monthly interest card, phone the credit card company, describe to them your current credit difficulties and request their help with points off your monthly rate.  Use this strategy with all your cards now.

Pay off the existing balance of your high interest cards, and quit using them.  If balance payoff is not possible, take off what you can.

Contact a veteran credit consolidation consultant and inquire credit card debt consolidation avenues you can take.  This is a comprehensive alternative to your situation.  Employ their expertise to completely beef up your finances.





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