Credit myths are not just annoying, they can be dangerous. Check out the 4 perceived credit myths below and find out whether they are true, false, or somewhere in between.
Myth #1: An Account May Only Stay On My Credit Report for 7 Years
False: The Fair Credit Reporting Act (FCRA) limits credit reporting on most negative accounts to around 7 years. However, there are exceptions to this rule (i.e. unpaid student loans, unpaid tax liens, judgments, bankruptcy, etc.).
Myth #2: Collection Accounts Must be Deleted from My Credit Report Once Paid or Settled.
False: The FCRA does not require for your debt collectors to remove paid collection accounts from your credit report. The balance on the account should be updated; however, many times they do not fulfill this obligation. If a paid/settled collection is reporting on your credit you can either dispute the mistake on your own or work with a professional credit repair company who can send disputes to the credit bureaus on your behalf.
Myth #3: Being Turned Down for a Loan Hurts My Credit
False: There is nothing on your credit reports which records the event when you are turned down for a loan. However, the simple fact of having your credit pulled for the application (aka the inquiry) could potentially have a negative impact upon your credit scores.
Myth #4: Debt Collectors Have the Right to Call Me to Collect a Debt
True: Your debt collectors do have the right to call you to try to collect a debt as long as they follow the rules and UNLESS you request to only be contacted via mail. If a debt collector is harassing you, the Fair Debt Collection Practices Act (FDCPA) gives you the right to request for the calls to stop.
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Dealing with credit issues can often be very overwhelming. You have the right to work on your credit problems alone, but you can also rely upon professionals to guide you through the process. If you need help with your credit, please click here or call 704-499-9696 today. We are waiting to hear from you!
Ron Lambright is an expert with over a decade and a half of experience in credit repair, credit improvement, credit reporting, and credit scoring. Ron is called upon weekly to speak at various seminars educating attorneys, loan officers, Realtors, other professionals, and consumers regarding the complex subjects of credit reporting and credit scoring. He is regularly featured on talk shows and podcasts and has been published in countless articles, educational handbooks, and blogs. He is an expert at teaching consumers and business owners how to achieve their credit related goals. Connect with Ron on Facebook here.