If you catch up on your late payments, it won't show up on your credit report.
FALSE! Each time you make a payment late, you run the risk of the creditor reporting the late payment to the credit bureau. If you catch up, your credit report must show that you are caught up - but it will also show that you were late.
If you pay a small amount by the due date, it will be counted as a full payment.
FALSE! You must pay the minimum amount required by the due date. Otherwise, your creditor may report the payment as late.
If you have a good reason for not paying, it will be overlooked.
FALSE! Contact the creditor if you experience a crisis, like losing your job or becoming seriously ill. You may receive a grace period or payment plan from the creditor, but never assume such an agreement is automatic.
When paid, the bad debt will go away.
FALSE! Because credit reports provide a history of your credit, bad debts, charge-off and late payments can stay on your credit report for seven years. You can, however, provide your own explanation of the situation for inclusion in the report received by future creditors.
You are not responsible for debts on joint accounts or co-signed accounts if they are not your purchases.
FALSE! Any time you are a joint account holder or co-signer, regardless of whether you've paid your share, both parties can be held completely responsible for the payment. The same is true for divorces.
You are not allowed to see your credit report.
False! You have a right to see what's in your credit report. A copy of your credit report may be free or may cost you a small amount of money.
Once you have credit problems, your credit score will not improve for seven years.
FALSE! You can improve your credit score over a shorter period of time because recent entries to your credit report carry more weight. So keep working toward better credit - you can do it!
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