Five Most Common Credit Myths

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

NOT TRUE! Closing your credit card account adds to the cutting down of credit age, which is also one of the largest bases of your credit rating. Your credit rating, therefore, will not improve even if you do choose to cancel your credit card accounts.

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

NOT TRUE! Accomplishing installment debts will never improve your credit score. The information with implications on your credit score is not the amount you paid for the loan, but the date you paid off the loan. Actually, credit report agents are only interested in finding out whether you paid for your balance according to schedule or not.

3. You can only have one credit score.

NOT TRUE! Actually, you can receive as many as three credit ratings. Each of the three leading credit report agencies in the US has its own means of preparing your credit score. The calculations achieved by the three companies translate to three credit ratings with diminutive discrepancies. All three credit ratings are accepted by the Fair Isaac Corporation, which is the company that is 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 mark, may it be a late payment item or an existing loan entry, can be erased from your credit report. You can do this by asking for a goodwill adjustment from your loaners or by testifying against the imprecision of your credit details.

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

NOT TRUE! It is actually the opposite. It is absolutely fine to have credit card activity; but it doesn't affect your credit balance. Keeping a very low balance or no balance at all is actually one of the best means to keep a good credit score 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, most 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 ways which you can absolutely do to remove late payment marks from your credit report:

1. Ask a goodwill adjustment from your original creditor.

One of the simplest techniques to remove a late payment from your credit account is to request a goodwill adjustment from your original loaner. Goodwill adjustment is a process of fixing your credit record from "late" to "current." Asking for adjustments from your creditors is rather easy if your payment records prior to the late payment are very acceptable.

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

Another technique that you can use to eliminate that late payment mark from your credit account record is to register for automatic payment services. Some creditors will help you eliminate the poor entries on your credit report only if you support their automatic payment service. The deal is actually a win-win situation: the creditor will get your credit payments on time and you will finish your financial responsibilities on schedule.

3. Pass a formal charge imposing that the late payment entry is actually imprecise.

Disputing the inexactness of the details of your credit history is another good way to get rid of the late payment mark on your credit report. Loaners, due to the overwhelming number of accounts they handle every single day, have the tendency to experience difficulty verifying the items on your credit record. If the creditors fail to verify the definitude of the late payment record, then that bad entry in your credit report will be erased.


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Clear up your charge card debt load while avoiding going bankrupt

Fighting to escape a mountain of credit card debt?  Getting endless waves of phone calls from debt collection companies?  Can't buy a new truck or a new house appliance because your credit limit is reached?  You can try some common yet proven methods of climbing out from under that hill of overdue notices:


Shift your credit balance from the card with higher rates to your cards with the lowest interest rates.  This tactic enables you to pay lower interest while moving towards eliminating your credit balance.

Change the card which has the heaviest interest rate to a low interest card, contact the credit card company, notify them your current credit troubles and solicit their help with discounts your interest rate.  Use this technique with your credit cards soon.

Completely eliminate the total remaining balance of your higher rate plastic, and quit using them.  If balance clearing is not feasible, pay as much as you can.

Get in touch with knowledgable credit card debt consolidation analyst and ask credit card debt consolidation options you can use.  This is an effective option to credit issues.  Use their expertise to completely upgrade your financial bottomline.





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