Bad Debt Credit Debt Consolidation Digest

Five Common Myths About Credit

2008-11-25T05:19:00.001-08:00

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

FALSE! Closing your credit card contributes to the shortening of your credit account age, which is one of the largest clinchers your credit score. Your credit rating, therefore, will not increase if you do opt to close your credit accounts.

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

FALSE! Settling installment loans will never improve your credit score. The detail with influences on your credit score is not the sum of money you spent for the loan, but the exact date you repaid the debt. The truth is, credit report officers are only interested in confirming even if you paid for your financial obligation before the deadline or not.

3. You can only have one credit score.

FALSE! In reality you can have as many as three credit scores. Each of the three major consumer credit reporting agencies in the country has its own process of computing your credit score. The data prepared by the three agencies translate to three credit scores with minute discrepancies. All three credit scores are accepted by the Fair Isaac Corporation (FICO), which is the company responsible for the preparation of your FICO credit scores.

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

FALSE! A bad marking, may it be a late payment record or an existing debt listing, can be eliminated from your credit account. You can initiate this by asking for a goodwill adjustment from your creditors or by testifying against the inexactness of your credit report.

5. If you hold your credit card balance, then your credit score will improve.You can improve your credit by maintaining your credit card balance.

FALSE! It is actually the opposite. It is perfectly fine to maintain credit card activity; however, it has no implications on your account balance. Keeping a remarkably low balance or no balance at all is absolutely one of the best ways to preserve a favorable credit score and improve it.

Remove Late Payments From Your Credit Report Using Three Different Ways

2008-11-21T02:14:00.001-08:00

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 you can certainly try to wipe off those late payment marks from your credit report:

1. Ask a goodwill adjustment from your first loaner.

One of the easiest techniques to delete a late payment from your credit account record is to ask your original lender for a goodwill adjustment. Goodwill adjustment is a process of altering your credit record from "late" to "current." Asking for goodwill adjustments from your lenders is a lot easier if your payment records prior to the late payment are relatively impressive.

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

Another technique that you can use to remove that late payment entry from that credit report is to register for automatic payments. Many lenders will help you erase the poor markings on your credit report only if you promise to avail of their automatic payment service. The deal is actually beneficial for both: the loaner will get your credit payments on time and you will finish your financial responsibilities on schedule.

3. Submit a formal charge stating that the late payment record is actually imprecise.

Questioning the inexactness of the items on your credit record is also a useful technique to wipe off the late payment entry on your credit account. Creditors, because of the huge amount of credit records they handle every day, have the tendency to experience a difficult time validating the details on your credit report. If ever the lenders fail to affirm the precision of the late payment record, then that negative marking in your credit record will be deleted.

Wipe out your credit card debt load and avoid bankruptcy

2008-11-11T04:41:00.001-08:00

Fighting to escape a ton of credit card collection notices? Getting endless waves of phone calls from collections call centers? Stopped from getting a new vehicle or a new wardrobe since your credit is maxed? You might want to look into some common yet proven methods of getting out from under that pile of credit card bills:

Shift your account balance from the card with a high rate to your credit card with low interest rates. This tactic empowers you to enjoy lower interest as you work on eliminating your balance.

Convert the credit card which has the biggest rate to a low monthly interest card, contact the credit company, notify them your current credit difficulties and ask for help with discounts your credit card interest. Use this strategy with all your cards today.

Pay off the total remaining balance of your high rate cards, and do not use them. If balance clearing is impossible, take off what you can.

Approach a veteran debt consolidation analyst and look into credit card debt consolidation options you can use. This is an effective solution to your financial problems. Take advantage of their consulting to drastically upgrade your personal finances.