Five Credit Myths You Should Know About

1.  You can improve your credit rating by closing your credit card accounts.

NOT TRUE! Canceling your credit card contributes to the cutting down of your credit account age, which is one of the largest clinchers your credit rating. The scores on your credit report, as a result, will not increase even if you do decide to cancel your credit cards.

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

NOT TRUE! Paying down installment loans will not improve your credit score. The detail with effects on your credit score is not the total amount of money you paid for the loan, but the time you paid off the debt. The truth is, credit report agents are only concerned with verifying if you settled your financial responsibility before the deadline or not.

3. Only one credit score is issued to you.

NOT TRUE! The truth is, you can get as many as three credit ratings. Each of the three major credit reporting agencies in the country has its unique procedure of preparing your credit score. The computations achieved by the three organizations result to three credit ratings with slight differences. The three credit ratings are acknowledged by the Fair Isaac Corporation (FICO), which is the company that is responsible for the calculation of your FICO credit scores.

4. You cannot erase a negative entry in your credit report before the seven-year requirement expires.

NOT TRUE! A bad marking, may it be a late payment listing or an existing liability item, can be erased from your credit report. You can start this by asking for a goodwill adjustment from your creditors or by disputing the inaccuracy of your credit details.

5. It is possible to improve credit score through the maintenance of your credit account balance.

NOT TRUE! It is actually the opposite. It is absolutely okay to retain credit card activity; but it has no effect on your credit balance. Maintaining an incredibly low balance or no balance at all is really one of the best means to prolong an acceptable credit score 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, most especially if you do not have several late payment markings on the same credit account, is not so 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 probably try to eliminate the late payment marks from your credit report:

1. Ask a goodwill adjustment from the first creditor.

One of the simplest means to get rid of late payment from your credit account record is to ask your original creditor for a goodwill adjustment. Goodwill adjustment is a process of altering your credit report marking from "late" to "current." Requesting goodwill adjustments from the loaners is easier if your payment records prior to the late payment are very satisfactory.

2. Work out a negative marking wipe off by availing of the automatic payment service.

Another method you can use to eliminate that late payment entry from that credit report is to sign-up for automatic payments. Many loaners will help you erase all the negative markings on your credit report only if you support their automatic payment service. The compromise is beneficial for both parties: the creditor will receive your credit payments on time and you will finish your fiscal duties on schedule.

3. Submit a claim contending that the late payment entry is really inexact.

Questioning the imprecision of the items on your credit history is another great means to get rid of the late payment entry on your credit report. Loaners, due mainly to the large number of credit reports they deal with every day, have the tendency to experience a difficult time confirming the entries on your credit record. If ever the loaners fail to verify the preciseness of the late payment record, then that negative marking in your credit record will be deleted.


Labels:

Clear up credit card debt while avoiding going bankrupt

Struggling to get out of a pile of credit card bills?  Getting tons of unwanted calls from debt collection call centers?  Stopped from getting a new truck or a new wardrobe because your credit limit is reached?  You might want to look into some common but effective ways of climbing out from under that hill of bills:


Convey your credit balance from the card with a high rate to your cards with the lowest interest rates.  This tactic enables you to pay lower interest while moving towards eliminating your remaining debt.

Convert the credit card account which has the biggest rate into a lower monthly rate card, phone the credit card company, notify them your current credit difficulties and ask for aid with points off your credit card interest.  Do this method for all your cards today.

Completely pay the remaining balance of your high rate cards, and stop using them.  If full payment is impossible, take off as much as you can.

Talk to veteran credit consolidation counselor and inquire credit card debt consolidation avenues you can exercise.  This is a viable alternative to credit issues.  Use their services to profoundly improve your personal finances.





Labels: