• Checking my credit score will lower my credit score.
• If I cosign on a loan, it will not affect my credit.
• If I dispute my information with one of the credit reporting agencies, it will automatically be updated with all 3 bureaus.
• Transferring my balances around from one card to another is a good way to manage my debt without hurting my credit.
• It doesn't matter when I pay a collection, because as soon as I pay it, it will be removed from my credit and my score will increase.
• All 3 of my credit reports and credit scores will be the same.
• Everything will be ok if I just pay the minimum payment due to get me by.
• If my debt gets to be too much, I can just start over by filing bankruptcy.
• Credit counseling will hurt my score as much as filing bankruptcy.
• My credit card balances will not hurt my credit, as long as I make my payments on time.
• When you get married, you and your spouse's credit are merged as one.
• If I get a divorce, my spouse will be responsible for half of the debt.
• A higher salary will improve my credit score.
• I don't need to check my credit report if I pay all my bills on time.
• The credit card companies would not offer me credit cards if I could not afford them.

Checking my own credit report will lower my credit score.

False. The credit reporting agencies recognize different types of inquiries. Checking your own credit report is called a “soft inquiry” and does not hurt your credit. Your credit is affected when you apply for credit with a creditor or lender and they do a “hard inquiry”. You should always obtain a copy of your credit report directly from the credit bureaus or a legitimate score seller like privacymatters.com to protect your credit.

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If I cosign on a loan, it will not affect my credit.

False. When you cosign for a loan you are taking responsibility for that loan and the payments that are required for that loan. It is as if you took the loan out yourself.

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If I dispute my information with one of the credit reporting agencies, it will automatically be updated with all 3 bureaus.

False. The 3 major credit bureaus, Experian, TransUnion and Equifax do not share information and you are responsible for contacting each of them.

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Transferring my balances around from one card to another is a good way to manage my debt without hurting my credit.

False. Although moving your debt to a lower interest credit card can save you some money, having too many cards can lower your score. Your score is also based on the “total revolving debt” that you have. So whether you have $10,000 on one card or $2,000 on three different card, you still have the same debt.

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It doesn’t matter when I pay a collection, because as soon as I pay it, it will be removed from my credit and my score will increase.

False. It is always best to pay a debt as soon as possible. Once you pay off a debt it will remain on your credit report as a paid item, which is still a negative mark on your credit. In addition, you are actually penalized for how long it took you to pay off the debt. It will take some time for the fact that the debt has been paid to balance out how long it took you to pay it. Eventually it will help your score, but may temporarily lower it.

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All 3 of my credit reports and credit scores will be the same.

False. It is more likely that all 3 of your reports and scores will be different. Each of the credit bureaus has different information about your credit. For instance, one bureau’s records may go back further, or one of your creditor’s may only report to one bureau and not the other two. You will probably also have a different number of inquiries on each report. Also, all lenders do not report to the bureaus at the same time. This is why it is important to check all 3 credit reports.

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Everything will be okay if I just pay the minimum payment due to get me by.

False. While it’s true that paying the minimum due will keep the credit card companies from harassing you, it will extend your payments for many years. If it’s possible try to send more than the minimum due. Think about this, paying off $5,000 over 8 years at a 19% interest rate will cost you $4,311 in interest alone. You will end up pay almost twice the amount of you initial debt.

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If my debt gets to be too much, I can just start over by filing bankruptcy.

False. Filing bankruptcy should only be considered as a last resort. It is a legal action that will require you to go to court and will become a matter of public record. Not only will the bankruptcy appear on your credit report, but every account included in you bankruptcy will also be notated on your credit report. You may even be required to still pay off some of your debt depending on your situation. It is a very serious decision with very serious consequences that can remain a part of your credit for 10 years.

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Credit counseling will hurt my score as much as filing bankruptcy.

False. Credit counseling is not considered negative for the formula that the credit bureaus use to calculate your credit score. Your ability to get a loan, however, may be affected. If the credit counselor isn’t paying what you originally owed or isn’t making your payments on time, that can hurt your credit. It is important to research credit counselors before choosing the one for you. Also, your credit report will only show that you are working with a credit counselor while you are in their program, whereas a bankruptcy can stay on your report for up to 10 years.

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My credit card balances will not affect my credit, as long as I make my payments on time.

False. The amount of debt you have greatly affects your overall credit score. Credit limits that are maxed out are considered as a negative mark. The best thing you can do, is to keep your balances 50% below your credit limit. So, if you have a credit card with a $1,000, then you only want to have up to a $500 balance at any given time.

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When you get married you and your spouse’s credit are merged as one.

False. Many people believe this to be true, but everyone has their own individual credit. Only accounts that have your name on them affect your credit. If you open a joint account or add yourself to an existing account, then those would appear on both you and your spouse’s credit report.

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If I get a divorce, my spouse will be responsible for half of the debt.

False. A divorce decree does not carry any legal weight with your creditors. It will not override any agreement you have signed. If your name is on the account, then you owe the money. So if you and your spouse sign on a car loan and the judge orders one of you to pay it, if it is not paid by that person, then both of your credits are damaged.

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A higher salary will improve my credit score.

False. More money does not equal better credit. Only paying off your debt will improve your credit. Income and net worth are not factors of your credit score.

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I don’t need to check my credit report if I pay all of my bills on time.

False. Everyone should check their credit at least once a year. Studies show that 80% of all credit reports have some type of error. These can range from wrong date of birth to accounts that don’t belong to you. It is very important to know what is and isn’t included in your credit. Finding out at the car dealership, when you are trying to buy a new car, is not when you want to discover an error.

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The credit card companies would not offer me credit cards if I could not afford them.

False. Most credit card offers are based on prescreening a portion of your credit report. You may not even be approved after your entire credit report and other criteria are reviewed. And it is solely your responsibility to decide if you can afford to accept their offer.

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