Five Most Common Credit Myths

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

FICTION! Closing your credit card account adds up to the cutting down of credit age, which is included in the primary clinchers your credit score. Your credit score, therefore, will not increase even if you do opt to cancel your credit accounts.

2. Credit scores are increased once you repay your installment loans.

FICTION! Settling installment loans will not increase your credit score. The detail that has implications on your credit rating is not the amount of money you repaid, but the date you paid down the debt. Actually, credit report officers are only interested in verifying if you paid for your financial responsibility on time or not.

3. You can only have one credit score.

FICTION! In reality you can get a maximum of three credit ratings. Each of the three major credit reporting agencies in the US has its unique process of computing your credit rating. The estimations achieved by the three companies translate to three credit ratings with minute differences. The three credit ratings are acknowledged by the FICO, which is the organization that is responsible for the calculation of your FICO credit scores.

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

FICTION! A poor entry, may it be a late payment entry or an existing liability account, can be removed from your credit record. You can do this by requesting a goodwill adjustment from your loaners or by reporting the inexactness of your credit details.

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

FICTION! It is actually the opposite. It is totally all right to retain credit card activity; however, it has no implications on your account balance. Keeping a profoundly low balance or no balance at all is indeed one of the most effective ways to keep a considerable credit rating 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 difficult. You can always negotiate your way into the removal of the late payment record on your credit report. Here are three different methods which you can conveniently do to eliminate those late payment marks from your credit report:

1. Ask a goodwill adjustment from your first creditor.

One of the simplest techniques to get rid of late payment from your credit account is to ask your original lender for a goodwill adjustment. Goodwill adjustment is a practice of modifying your credit record from "late" to "current." Asking for a goodwill adjustment from your loaners is rather easy if your payment records prior to the late payment are all in all acceptable.

2. Negotiate a late payment removal by signing up for automatic payment service.

Another method you can use to remove that late payment entry from that credit report is to sign-up for automatic payment services. Several loaners will help you erase all the bad records on your credit report only if you employ their automatic payment service. The bargain is actually advantageous to both: the creditor will receive your payments on time and you will complete your fiscal responsibilities on schedule.

3. Submit a claim contending that the late payment marking is inaccurate.

Disputing the imprecision of the entries on your credit record is also a great means to eliminate the late payment entry on your credit report. Lenders, because of the large number of credit records they manage every day, have the tendency to experience a difficult time validating the details on your credit report. If the loaners fail to certify the exactness of the late payment record, then that negative mark in your credit record will be deleted.



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Clear your charge card balance and avoiding going bankrupt

Swimming to be free of a heap of credit card bills?  Hassled by swarms of unwanted calls from collections call centers?  Can't buy a new truck or a new wardrobe since your credit is maxed out?  You can try some common yet effective ways of digging out from under that mountain of credit card debt:


Move the balance of your credit card from the credit card with high rates to your cards with low interest rates.  This tactic empowers you to get charged lower interest as you work on discharging your remaining balance.

Change the credit card account which has the biggest interest to a lower rate card, contact the credit card company, inform them your financial difficulties and ask for aid with discounts your monthly rate.  Do this method for all your credit cards soon.

Completely eliminate the existing balance of your high rate cards, and stop using them.  If balance payoff is not possible, reduce as much as possible.

Talk to experienced credit consolidation consultant and inquire credit card debt consolidation approaches you can use.  This is a viable solution to your financial problems.  Employ their expertise to profoundly positively change your personal cashflow.





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