Five Common Myths About Credit

1.  Canceling credit cards helps increase credit scores.

NOT TRUE! Canceling your credit card account adds to the cutting down of your credit account age, which is also one of the largest determinants your credit score. Your credit rating, therefore, will not increase if you do decide to close your credit cards.

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

NOT TRUE! Settling installment liabilities will not increase your credit score. The detail with influences on your credit rating is not the sum of money you paid for the debt, but the time you settled the loan. In fact, consumer credit report agents are only interested in identifying whether you paid for your financial obligation on time or not.

3. It is impossible to get more than one credit score.If you receive your credit reports from different agencies, then your credit scores will all look the same.You can only get one credit score.

NOT TRUE! In reality you can obtain as many as three credit scores. Each of the three leading consumer credit reporting agencies in the country has its own means of preparing your credit rating. The computations prepared by the three companies result to three credit scores with slight discrepancies. All three credit scores are accepted by the FICO, which is the organization that is accountable for the preparation of your FICO scores.

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

NOT TRUE! A bad entry, whether it is a late payment record or an existing liability listing, can be deleted from your credit record. You can start this by requesting a goodwill adjustment from your creditors or by testifying against the inaccuracy of your credit records.

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

NOT TRUE! It is actually the opposite. It is entirely fine to have credit card activity; however, it doesn't affect your account balance. Keeping a particularly low balance or no balance at all is really one of the most effective means to preserve an acceptable credit rating and improve it.


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Remove Late Payments From Your Credit Report Using Three Different Ways

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 methods you can certainly try to delete the late payment marks from your credit report:

1. Request a goodwill adjustment from the first loaner.

One of the simplest ways to get rid of late payment from your credit report is to request a goodwill adjustment from your original loaner. Goodwill adjustment is a practice of adjusting your credit report marking from "late" to "current." Requesting goodwill adjustments from the creditors is somewhat easier if your payment records prior to the late payment are all in all acceptable.

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

Another technique that you can use to wipe off that late payment entry from that credit account is to register for automatic payment services. Many creditors will help you eliminate all the late payment markings on your credit report only if you support their automatic payment service. The compromise is actually a win-win situation: the loaner will get your credit payments on time and you will accomplish your financial obligations on schedule.

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

Disputing the imprecision of the details of your credit history is also  a useful way to get rid of the late payment entry on your credit account. Loaners, thanks to the overwhelming number of credit records they deal with every day, have the tendency to have a difficult time affirming the entries on your credit account. In the event that the creditors fail to affirm the accurateness of the late payment record, then that bad mark in your credit report will be removed.


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Wipe out your charge card debt without bankruptcy

Clawing to be free of a ton of credit card bills?  Getting a lot of calls from collections companies?  Blocked from buying a new truck or a new sound system since your credit tapped out?  Here are some common yet proven methods of getting out from under that pile of credit card bills:


Move your credit balance from the credit card with high rates to your credit card with the lowest interest rates.  This tactic empowers you to enjoy lower interest as you work on discharging your credit balance.

Switch the account which has the heaviest rate to a low monthly interest card, contact the credit company, make it clear to them your current credit difficulties and ask for aid with points off your monthly rate.  Use this strategy with all your cards today.

Completely pay the remaining balance of your high rate credit cards, and quit using them.  If full balance payment is not feasible, pay down as much as you can.

Talk to knowledgable debt consolidation counselor and ask credit card debt consolidation approaches you can use.  This is a comprehensive alternative to credit issues.  Use their knowledge to effectively positively change your personal finances.





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