Credit is a complex subject, and like most complex subjects it's often misunderstood. As a result, many people learn information about credit that simply isn't true. Our credit specialists are trained to help you navigate the myths and understand the truth about your credit. Give us a call, and we will explain the truth!
The following list is a sample of the popular credit myths we can help you understand.
- Paying off your collections will help your credit score.
- Once you pay a collection, charge-off, judgment, or tax lien it no longer impacts your credit score.
- Using your credit cards a lot will increase your payment history and raise your score.
- Multiple credit inquiries pulled at one time in the same industry will not negatively impact your credit score.
- Consumers have just three credit scores.
- It is better if an account goes late occasionally than if it goes bad altogether.
- Paying off your auto loan, student loan, or mortgage loan will help improve your situation.
- Paying off your major credit cards and leaving the small store cards maxed is the better choice.
- You should pay off one revolving account at a time.
- Paying a large up-front credit repair fee will get you better service.
- After 7 years, a negative item on your report will disappear and will no longer lower your score.
- Having a third party, such as a consumer credit counseling firm, manage your finances will help improve your credit score more quickly.
- For corrections, the burden of proof lies with the consumer.
- My divorce decree states that my spouse is responsible for that debt, so any future negative items will not impact my credit score.
- Your collection was sold, so the original one will be erased.
- You need to contact your creditors rather than the bureaus every time you think there is a mistake on your credit report.
- The credit bureaus, creditors and lenders are your friends!
- You have only one credit score.
- A higher salary will improve your credit score.