home loan finance blog
Credit Score Myth #1
Paying off a past due account will delete the negative account from your credit report. A late payment is a late payment. When you pay off an outstanding debt, it will still show on your credit report as a negative listing, even though it was paid.
Credit Score Myth #2
Bankruptcies and foreclosures cannot be deleted from a credit history. These types of negative listings on your credit report can be deleted. There are companies who specialize with getting negative listings deleted, including bankruptcy and foreclosures. Although you can educate yourself and try to get these negative credit listings removed by yourself, it is recommended you enlist a specialist to do this for you.
Credit Score Myth #3
Disputing a negative credit listing and getting it removed from a credit report is easy. It is simple to dispute a negative credit listing, but following through and getting it deleted from a credit report is a difficult and time consuming process. There are credit repair companies who can make this less difficult.
Credit Score Myth #4
Bankruptcy will allow me to start clean with a new credit history. The fact of the matter is bankruptcy is the worst possible thing you can do to your credit report. Every account you choose to include in your bankruptcy is shown on your credit report as Included In Bankruptcy. If not dealt with properly, your credit report will show multiple negative listings for up to 10 years as a result of filing for bankruptcy.
Credit Score Myth #5
Closing credit card accounts will increase my credit score. When you close credit card accounts, you reduce the amount of instant credit accessible to you. Closing these accounts can and will hurt your credit score. As long as you dont have your credit cards maxed out (keep your balances under 35% of the limit), you should keep some open accounts. And as always, pay your statements on time.