Myth: My credit score and the information on my credit report can’t change.

Fact: There are many things you can do to change your credit score. If you pay your bills on or before the due date and educate yourself on better credit options, your FICO score will steadily improve. Just because you have poor credit now, does not mean you will have it forever. There is always a financial solution if you are willing to put forth the time and energy to find one. As for the information on your credit report, it is not irreversible. Only accurate information will stay on your credit report. If it cannot be verified within 30 days it will be removed thanks to the Fair Credit Reporting Act.

Myth: Once I pay off a delinquency, it will be removed from my credit and my FICO score will increase 20-30 points.

Fact: Delinquencies such as late payments, charge-offs, etc. can stay on your credit reports for seven years or more depending on when the credit card company does the charge-off. Once you pay a late debt, there are still other factors to consider. If your creditor had to outsource to a collection agency, you are responsible for paying the collector fee as well as your creditor and any additional late fees. Even if you have paid all people involved, you still have seven years before it falls off your credit report after the first late payment or after the credit card company does the charge-off. Paying off debt certainly will help your score, but there are several other factors considered in the credit scoring model. Fixing one factor in your credit report, does not guarantee a 20-30 point increase. In fact, it is nearly impossible to predict exactly how many points you will gain.

Myth: Checking my credit will damage my credit score.

Fact: There are two types of credit inquiries: hard and soft. Hard inquiries affect your score negatively for one year whereas soft inquiries do not, but both can stay on your credit report for two years. If you want to check your credit for your own personal knowledge, it will not affect your score. Only inquiries made by creditors when you apply for new forms of credit can lower your score a few points. All other inquiries are safe.

Myth: My ex-husband/wife will owe half the debts.

Fact: If you and your spouse have joint accounts, then you are both liable for making payments. Should one decide to stop payments after a divorce, the other’s credit can still drop if he or she does not pay the total. If you have separate accounts, then this may not be a problem. But do not assume that an ex-spouse will pay even if the judge rules that he or she must, because the creditors still see you equally responsible for making payments as your ex-spouse.

Myth: I can improve my credit by closing old and inactive accounts.

Fact: Closing accounts may actually lower your credit score because it lowers your debt ratio and the average age of the credit file. Instead of closing those accounts, start using them. As long as you use your cards once every six months, they will not become inactive. Keeping your accounts will allow you to reap the benefits of shared debt over two or more cards and higher limits. If you must close an account, close a newer account so the average age of your credit file will not drop along with your debt ratio.