5 Credit Reports Myths Debunked

I had another great opportunity to be a finance expert on Experian’s #CreditChat panel. The topic was myths about Credit Reports. After I gave my insights I thought to share some with you. 

When it comes to credit reports, there are various myths and misconceptions. 

Here are 5 myths and responses:

1. People believe credit reports are not easily accessible. Response: This is untrue. Individuals can access a free credit report at www.annualcreditreport.com. ​

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1. Another myth is that variations in your name, social security number, or address are not errors in your credit report. Response: This is untrue as all of these are errors. Each of these times, name, social security number, or address, should be exact with no variations. You are accountable for the data on your credit report. If there have been some identified, you have to get then corrected in with ever report has the error(s). 
2. Many people think bankruptcies are deleted when they are discharged. Response: In truth, they stay on your credit report 10 years after filing. So they are not removed when the bankruptcy is discharged.
3. A divorce decree will remove your responsibility for paying a debt. Response: Actually both parties are responsible for the combined accumulated debt.
4. For those recently married, you may have questioned if your new spouse’s credit report will be merged with yours after marriage. Response: Credit reports are by an individual's social security number. The report will never be merged. However, both you and your spouse should have 3 separate credit scores. Each of the 3 main credit bureaus, Experian, Transunion, and Equifax, and all creditors, may not report history to all three; therefore, your score at each bureau is its own. 

As the panel responded to questions regarding credit reports myths there were some about credit reports,  Here are a couple that were asked:

“Does closing a credit line impact your score?” Yes it can as the length of time you had the credit line is a component of your credit score. So when you close a card that removes your ability to get rated on that component for that line time.

Should I leave a small balance on my credit cards as I was told it help my credit scores?”. It’s actually always best to pay your card balance in full each month or at the very least within 10-28% of the balance. Another component of your score is the amount of debt owed. So when that percentage is 0 or less that 30% it helps your score.

These were the most common credit myths debunked! I also encourage you yo do your research and if there are other myth you wanted debunked, let me know. 

Check out other blog on credit reports here

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