MYTH OR FACT 

Myth: The information on a credit report cannot be changed.

Fact: The exact opposite is true. The Fair Credit Reporting Act requires that items be removed if they are not 100% accurate OR cannot be verified for their accuracy within 30 days. Also, a creditor can change any information it is responsible for reporting and confirming.

Myth: Inquires (requests) for your credit report cannot hurt you.

Fact: Most creditors do not like to see a large number of inquires on consumer credit reports. Excessive inquiries can result in a credit denial as easily as bad credit.

Myth: Bankruptcy is a “New Beginning.”

Fact: Although bankruptcy is the first step to this “New Beginning,” it is only the start. After a consumer’s debts have been federally discharged, their credit report will also require accurate updating. Quite often consumers are further damaged by accounts that continue reporting inaccurate information after they have been discharged through bankruptcy. With their credit reports accurately updated, consumers must then immediately begin to re-establish a positive personal credit history to re-build credit worthiness.

Myth: After a divorce, an ex-spouse’s failure to pay court assigned debts as agreed will not affect your credit file.

Fact: Divorce does not release a consumer from the responsibility to pay their creditors as agreed. Although a court may order an ex-spouse to assume certain debts, all debts incurred jointly while married are the responsibility of both parties. Creditors will continue to report payment history (good and bad) jointly on these accounts until paid off or closed.

Myth: Only negative entries on a credit report can lower your credit (FICO) score.

Fact: Negative credit such as charge offs, collection accounts and late payment histories are not the only factors that lower a consumer’s credit score. In determining this score, there is also a strong emphasis related to how well you mange your credit. High credit card balances in relation to available credit, excessive lines of credit, the number of accounts that are unseasoned (open less than 24 months) and the number of secured accounts opened are just a few of the aspects that make up a consumer’s credit score.

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