Credit Facts and Myths Revealed

credit facts and myths revealed


Undersdtanding the facts about your credit is one of the most important things to have knowledge on. Here, you will find credit facts and myths that may surprise you!

Having a bankruptcy or foreclosure on your credit report will prevent you from getting loans or credit in the future


While each of these items is damaging to your credit report, the negative effects of these and other items lightens up over time. A bankruptcy can only stay on your credit for between 7 to 10 years, depending on which chapter you file.

A foreclosure can only stay on your credit report for 7 years from the date of first delinquency. If you have a foreclosure in your credit report you should wait 3 years to apply for a home loan again or if you had a bankruptcy you should wait at least 2 years to apply for a home loan again.

Paying the minimum payment on credit cards will help your credit score


Only if your credit card balance is between 20% to 30% of the credit limit. If the credit card is max out your credit score may be affected by 30%.

Closing credit cards will raise your credit score.


FICO score considers not only available credit but credit utilization. That is, what percentage of your credit you use. By closing credit card accounts, your utilization may go higher and thus, lower your score.

When you get married, you get a joint credit report.


We come into this world as individuals and enter the credit world the same way.

The divorce decree will remove the accounts from my credit report.


The divorce decree is the order the judges gives to assigns each person their financial responsibilities. This document will not remove the accounts from the credit report unless the account is refinance under the name of the person who is now responsible for the account. If the accounts were joint and payments are not made on time it will affect both credit report.