Five Credit Myths You Should Know About

1.  Credit ratings are improved if you closed your credit card accounts.

NOT TRUE! Canceling your credit card influences the cutting down of your credit account age, which is also one of the largest clinchers your credit score. Your credit rating, as a result, will not improve if you do choose to cancel your credit card accounts.

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

NOT TRUE! Paying down installment loans will never increase your credit score. The factor with effects on your credit rating is not the amount of money you paid for the debt, but the date you repaid the loan. Actually, credit report officers are only concerned with identifying if you settled your financial responsibility before the deadline or not.

3. Having only one credit score is natural.

NOT TRUE! The truth is, you can have as many as three credit scores. Each of the three major credit report agencies in the US has its own process of calculating your credit rating. The figures prepared by the three companies result to three credit scores with slight dissimilarities. The three credit scores are recognized by the Fair Isaac Corporation (FICO), which is the institution accountable for the calculation of your FICO credit scores.

4. It is impossible to remove a bad marking from your credit report.

NOT TRUE! A poor entry, whether it is a late payment record or an existing liability account, can be deleted from your credit account. You can start this by requesting a goodwill adjustment from your loaners or by disputing the inexactness of your credit report.

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

NOT TRUE! It is actually the opposite. It is perfectly all right to have credit card activity; however, it has no effect on your account balance. Keeping a substantially low balance or no balance at all is indeed one of the most effective means to preserve a good credit rating and improve it.



Labels:

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 talk your way into the removal of the late payment record on your credit report. Here are three different ways that you can actually try to erase late payment marks from your credit report:

1. Ask a goodwill adjustment from the original loaner.

One of the simplest methods to erase a late payment from your credit account is to ask your original creditor for a goodwill adjustment. Goodwill adjustment is a process of fixing your credit record from "late" to "current." Asking for a goodwill adjustment from the loaners is much easier if your payment records prior to the late payment are considerably acceptable.

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

Another way you can use to delete that late payment entry from your credit account is to sign-up for automatic payments. Many loaners will help you eliminate all the bad markings on your credit account only if you employ their automatic payment service. The setup is advantageous to both: the loaner will obtain your payments on time and you will finish your financial obligations on schedule.

3. Forward a lien imposing that the late payment marking is really inaccurate.

Refuting the inexactness of the details of your credit history is another great means to erase the late payment entry on your credit report. Lenders, thanks to the large number of accounts they deal with every day, have the tendency to experience a difficult time proving the details on your credit report. In the event that the loaners fail to prove the definitude of the late payment record, then that bad entry in your credit record will be deleted.



Labels:

Eliminate your personal credit card debt while avoiding filing bankruptcy

Trying to be free of a pile of credit card debt?  Hassled by tons of calls from credit collection firms?  Can't buy a new car or a new sound system since your credit tapped out?  Here are some common but effective ways of climbing out from under that hill of overdue notices:


Shift your credit balance from the credit card with the highest rate to your cards with low rates.  This move enables you to enjoy lower interest while waiting on discharging your remaining balance.

Switch the credit card account that has the top monthly rate into a low monthly interest card, phone the card provider, describe to them your current credit iessues and request their help with points off your monthly rate.  Use this technique with your credit cards today.

Completely pay the remaining balance of your high interest credit cards, and stop using them.  If balance payoff is impossible, pay what you can.

Approach a knowledgable credit consolidation counselor and ask credit card debt consolidation approaches you can exercise.  This is a viable option to personal credit problems.  Employ their expertise to completely upgrade your personal cashflow.





Labels: