Credit Myths

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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. Credit specialists at NCC are trained to help you navigate the myths and understand the truth about your credit.
 

• 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 3 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 1 credit score

• A higher salary will improve your credit score