Five Credit Myths You Should Know About

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

FICTION! Closing your credit card contributes to the cutting down of your credit account's age, which is also one of the primary determinants your credit rating. The credit scores on your records, therefore, will not improve even if you do opt to close your credit card accounts.

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

FICTION! Settling installment liabilities will never increase your credit score. The factor that has implications on your credit rating is not the amount you paid for the loan, but the exact date you settled the loan. Actually, credit report agents are only concerned with determining if you took care of your financial responsibility on time or not.

3. Only one credit score is issued to you.

FICTION! Actually, you can have a maximum of three credit ratings. Each of the three major consumer credit reporting agencies in the country has its own way of calculating your credit rating. The figures achieved by the three agencies result to three credit ratings with minute differences. All three credit ratings are acknowledged by the FICO, which is the company that is responsible for the calculation of your FICO scores.

4. You can never remove a negative entry in your credit report until the seven-year requirement is up.

FICTION! A bad entry, whether it is a late payment item or an existing debt account, can be removed from your credit record. You can start this by asking for a goodwill adjustment from your creditors or by testifying against the inexactness of your credit records.

5. You can improve your credit by holding your credit card balance.

FICTION! It is actually the opposite. It is perfectly fine to have 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 ways to keep a considerable credit rating and improve it.



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Three Easy Methods to Get a Late Payment Removed From 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  use to eliminate those late payment marks from your credit report:

1. Ask a goodwill adjustment from your original loaner.

One of the simplest techniques to remove a late payment from your credit account is to ask your original loaner for a goodwill adjustment. Goodwill adjustment is a practice of altering your credit report marking from "late" to "current." Requesting adjustments from your loaners is a lot easier if your payment records before the late payment are all in all satisfactory.

2. Negotiate a late payment removal by availing of the automatic payment service.

Another way you can use to remove the late payment mark from your credit account is to register for automatic payments. Several loaners will help you erase all the bad records on your credit account only if you promise to avail of their automatic payment service. The setup actually benefits both parties: the loaner will receive your payments on time and you will finish your financial duties on schedule.

3. Submit a formal document stating that the late payment entry is imprecise.

Disputing the inexactness of the details of your credit record is also a good way to get rid of the late payment mark on your credit report. Lenders, because of the vast amount of accounts they manage every day, have the tendency to have difficulty justifying the items on your credit report. If the loaners fail to confirm the preciseness of the late payment record, then that poor mark in your credit record will be wiped off.


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Clear up credit card debt while avoiding going bankrupt

Trying to get out of a pile of credit card debt?  Getting tons of unwanted calls from debt collection call centers?  Blocked from buying a new truck or a new wardrobe since your credit tapped out?  Here are some of the common yet effective steps of getting out from under that pile of credit card bills:


Move the balance of your credit card from the credit card with high rates to your credit card with low rates.  This move empowers you to pay lower interest while moving towards paying off your balance.

Convert the account with the top interest to a lower rate card, phone the card provider, show them your current credit iessues and solicit their help with discounts your monthly rate.  Try this method for all your credit cards today.

Completely pay the leftover balance of your high interest plastic, and quit using them.  If full payment is not possible, take off as much as possible.

Talk to veteran credit card debt consolidation consultant and look into credit card debt consolidation options you can take.  This is a comprehensive option to your situation.  Take advantage of their consulting to drastically beef up your finances.





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