Myths About Your Credit Report – Part 2
Let’s continue to discuss credit report and credit score beliefs that are true and false. There are a lot of people out there making statements about things they really don’t know about, and then they are believed as if they were facts.
Myth #1 – As soon as I pay a collection off it will be removed from my credit report. A collection is a very serious derogatory on your credit report, and collections can stay on a credit report for 7 years from the date you went 30 days late. Just because you paid off the collection does not mean the collection agency is going to remove it. If collection agencies removed the derogatory remarks from credit scores too easily, a collection would not have the same fear-inspiring affect that it currently has.
Myth #2 – Once I pay off a credit card and close the account the credit card will no longer show on my credit report. A credit card that has no derogatory information on it could possibly stay on your credit report for years, there is no statute of limitations on good credit. However, if you have derogatory remarks on this account, then the statute of limitations is 7 years from the 30 day late.
Myth #3 – Every time I pull my credit report a score is generated. This is not a true statement, if you have not pulled a credit report through a credit monitoring system that provides your scores and you have not paid for your scores, a credit score will not be generated. Your credit report and your credit scores are two totally different reports that are merged together as one, when a report with a credit score is asked for.
Myth # 4 – My ex-husband or ex-wife can’t hurt my credit score now that we are divorced and the judge has divided all the financial obligations in the divorce decree. Absolutely false, even though the judge has divided up the debts, you will still be held responsible if that debt goes unpaid…if your name remains on the credit card or whatever the financial obligation is. The creditors do not have a say in the matter when the judge is dividing out the bills, but if you go to your creditor and have your name removed completely from the obligation then you may be saved from future credit score pains.