Myth #1 When I pay off an account, it will no longer be reported or considered to be
negative.... WRONG! Usually it is re-reported and re-aged!
Myth #2 If a negative item is deleted it will just come right back on my report. WRONG!
Myth #3 Certain items like bankruptcies, foreclosures, tax liens, and repossessions are
impossible to remove from a credit report....WRONG! Anything on a Credit File can be changed or removed!
Myth #4 Disputing a credit report is easy and consumers can easily do it themselves.
Wrong! Most consumers get frustrated and give up because of the obstacles put before them by the Credit Bureaus!
Myth #5 The Credit Bureaus will read my 100 word statement and take my side of the story into account... Wrong! If it was that easy then everybody would have good credit!
Myth #6 Credit Bureaus are infallible, a branch of the government, or otherwise beyond reproach... Wrong!
Myth #7 I can get a new credit file by getting a federal tax ID number... Very Big Mistake! This is illegal!
Myth #8 If I build enough good credit; it will offset my bad credit. Wrong!
Myth #9 A credit counseling service can help me restore my credit rating. Wrong!
Myth #10 The law requires that an item remain on my credit report for 7 years. Simply not so!
Credit Facts
Chapter 7 Bankruptcy:
10 years from date of filing.
Chapter 13 Bankruptcy:
7 years from date
paid in full and 10 years if not paid as agreed.
Judgments:
7 years from date filed.
Foreclosure:
7 years from date foreclosed.
Collection accounts:
7 years from the
date of delinquency with the original creditor.
Paid Tax Liens:
7 years from date paid.
Unpaid Tax Liens:
Indefinitely from date reported.
Trade lines (line of credit or loan):
10
years from the date paid in full or closed.
Charge
offs:
7 years from date of original delinquency.
Closed accounts:
10 years from date closed if paid as
agreed.
Payment Patterns:
Credit
grantors typically do not consider payment history older than 2 years, but can
remain on for as long as 7 years.
Credit Inquiries:
2 years (placed by you or a creditor)
Adverse information:
may remain up to 7 years from date
of delinquency
