Five Credit Myths You Should Know About

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

FALLACY! Closing your credit card account contributes to the shortening of your credit account's age, which is included in the primary bases of your credit rating. Your credit rating, as a result, will not improve even if you do decide to close your credit cards.

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

FALLACY! Settling installment loans will never increase your credit score. The factor with influences on your credit rating is not the total amount of money you spent for the debt, but the date you paid back the debt. Actually, consumer credit report agents are only focused on determining if you settled your loan according to schedule or not.

3. Having only one credit score is natural.

FALLACY! The truth is, you can receive as many as three credit scores. Each of the top three credit reporting agencies in the US has its own way of computing your credit rating. The data prepared by the three organizations result to three credit scores with slight differences. All three credit scores are acknowledged by the Fair Isaac Corporation (FICO), which is the company responsible for the preparation 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.

FALLACY! A bad entry, may it be a late payment record or an existing loan listing, can be erased from your credit account. You can do this by asking for a goodwill adjustment from your creditors or by testifying against the inaccuracy of your credit details.

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

FALLACY! It is actually the opposite. It is totally all right to retain credit card activity; however, it doesn't affect your credit card balance. Keeping a substantially low balance or no balance at all is indeed one of the most effective means to prolong a good 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 difficult. You can always negotiate your way into the removal of the late payment record on your credit report. Here are three different methods that you can freely do to wipe off those late payment marks from your credit report:

1. Request a goodwill adjustment from your original creditor.

One of the easiest ways to remove a late payment from your credit account record is to ask your original loaner for a goodwill adjustment. Goodwill adjustment is a practice of altering your credit marking from "late" to "current." Asking for adjustments from your lenders is easier if your payment records prior to the late payment are considerably impressive.

2. Arrange a negative marking wipe off by simply availing of the automatic payment services.

Another way you can use to remove the late payment entry from that credit account is to register for automatic payment services. Several lenders will help you erase the bad markings on your credit account only if you support their automatic payment service. The compromise is actually beneficial for both parties: the creditor will obtain your payments on time and you will finish your fiscal obligations on schedule.

3. Present a formal document imposing that the late payment marking is imprecise.

Refuting the inexactness of the items on your credit history is another effective means to erase the late payment entry on your credit report. Loaners, thanks to the large number of credit records they handle every day, have the tendency to experience a difficult time verifying the items on your credit account. In the event that the lenders fail to justify the accurateness of the late payment record, then that bad mark in your credit record will be wiped off.


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Eliminate credit card debt without bankruptcy

Clawing to escape a heap of credit card collection notices?  Getting tons of annoying calls from credit collection firms?  Can't get a new vehicle or a new wardrobe since your credit limit is reached?  You might want to look into some common yet useful steps of getting out from under that mountain of credit card debt:


Shift your credit balance from the credit card with the highest rate to your cards with low rates.  This tactic empowers you to pay lower interest as you work on paying off your credit balance.

Change the card with the heaviest interest into a lower monthly rate card, contact the credit card company, describe to them your financial iessues and ask for help with points off your monthly rate.  Try this method with your credit cards today.

Completely pay the total remaining balance of your high rate plastic, and do not use them.  If balance clearing is not possible, take off what you can.

Approach a experienced credit consolidation specialist and look into credit card debt consolidation avenues you can take.  This is a viable alternative to your financial problems.  Employ their expertise to effectively positively change your finances.





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