Credit Myths, Busted

"Checking your own credit hurts your score."

Checking your own credit is called a "soft inquiry" and has absolutely no impact on your credit score. You can check it as often as you like. Only "hard inquiries" — when a lender checks your credit for a loan application — can affect your score.

"Negative items stay on your credit report forever."

Most negative items — like late payments, collections, and charge-offs — must be removed after 7 years. Chapter 7 bankruptcies can remain for up to 10 years. After that, credit bureaus are legally required to remove them.

"You can't dispute accurate negative items."

You have the right to dispute any item that is inaccurate, incomplete, or unverifiable — even if it was originally accurate. If a creditor cannot verify the information within 30 days, it must be removed.

"Closing old credit cards improves your score."

Closing old accounts can actually hurt your score by reducing your available credit and shortening your credit history. In most cases, it's better to keep old accounts open — even if you don't use them.

"You only have one credit score."

You actually have dozens of credit scores. Different scoring models (FICO, VantageScore) and different versions of those models produce different scores. Lenders may use any of them, which is why your score can vary between sources.

"Paying off a collection removes it from your report."

Paying a collection account does not automatically remove it from your credit report. It will be updated to show "paid," but it can still remain on your report for up to 7 years from the original delinquency date.

"You need to carry a balance to build credit."

You do not need to carry a balance or pay interest to build credit. Using your credit card and paying the full balance each month demonstrates responsible use and can actually improve your score faster.

"Credit repair is illegal or a scam."

Legitimate credit repair is completely legal. The Credit Repair Organizations Act (CROA) regulates the industry to protect consumers. Companies like Revival Solutions operate in full compliance with federal law.

"Your income affects your credit score."

Your income is not reported to credit bureaus and has no direct impact on your credit score. Credit scores are based on payment history, amounts owed, length of credit history, new credit, and credit mix.

"A divorce decree removes joint accounts from your credit."

A divorce decree is a legal agreement between you and your ex-spouse — it does not change your obligations to creditors. Joint accounts remain on both parties' credit reports until they are paid off or refinanced.