There is a lot of misinformation about managing your credit and debts. Here are some of the biggest credit repair myths so you know fact from fiction.

1: Amount of debt affects credit score.
It was only for $50. It shouldn't affect my score very much.

Fact: It doesn't matter if you have an outstanding bill for $10.00 or $10,000 a collection is a collection, and any collection will lower your credit score. The only difference is that smaller debts are easier to pay off or settle and larger debts take more time to get under control.

2: They didn't send me a bill.
It's not my fault. I moved and they didn't send the bill to the right address (even though I gave it to them) so it shouldn't be on my credit report.

Fact: Believe it or not, sending you a bill is a courtesy not a requirement. At the end of the day it is your responsibility to know when your bills are due and to make sure the payments are made on time.

3: Paid accounts automatically disappear from your credit report.
I paid it off, it shouldn't show up on my credit report anymore.

Fact: Legally, you have the right to fair and accurate credit reporting. If you paid off a collection, it should technically report as paid collection with a zero balance. You can still dispute this line item and it is likely to be removed.

4: Divorce and Credit.
I got a divorce and the judge ordered my ex to pay these bills. They shouldn't be on my credit report anymore.

Fact: If your name is still on the credit line, you are still responsible for the account, regardless of what a judge rules. Here's how it works: You made a deal with the lender. You agreed to pay any money you charge/borrow. It's not the creditor's fault the marriage didn't work out.

5: Collectors re-aging debts once paid.
I heard if I pay this old collection off it will hurt my score because it will re-age the debt.

Fact: Debt collectors do not re-age debts. Only original creditors can and even then it's not something they make a habit of doing.

If you want clarity of the credit repair process and how we can help you, schedule a free 15-minute consultation and let IdeaCraft help you. Legitimate credit repair is more than a monthly fee and you have the right to dispute everything on your credit report speech that other credit repair mills tell you. IdeaCraft Consultancy believes that knowledge is power and we work with you to maintain excellent credit.