Credit Myths

You might have heard stories about credit and how credit reports work. Don't be fooled by misinformation. Here are some common myths about credit, followed by the facts.

MYTH:
You must give permission for your credit report to be issued.

FACT: Any credit grantor with a permissible purpose may access credit reports without the consumer's permission.

MYTH:
The credit bureau can deny a credit application.

FACT: Credit bureaus have no power to accept or deny credit. They only collect and report information.

MYTH:
After you pay off a debt, it disappears from your credit report.

FACT: A credit report shows the whole credit history. All debts - even if they're paid off - are included. Negative credit information can stay on your report for 7 years. A bankruptcy can stay for 10 years.

MYTH:
You're not responsible for debts on joint accounts if you didn't make the purchases.

FACT: On a joint account, both parties are held completely responsible for payment. If you pay your share but the other person doesn't, each of you gets the same negative credit rating.

MYTH:
A divorce decree separates joint accounts.

FACT: Divorce does not cause anything to happen automatically in your credit report. To protect your credit rating, pay off and close all joint accounts, then reopen new accounts as a single account owner.

MYTH:
Risk scores have replaced a credit report review.
F
ACT: Credit reports are still the number one tool used by creditors to determine your creditworthiness.



 

 

    Fannie Mae
    Freddie Mac
   
Ginnie Mae
   
VA
   
FTC
   
FDIC
   
FRB
   
HUD
   
Complaints

 

 Discussion Forum

Recent Posts -

Ads


Credit Problems

Homeowners - get fast, easy & free online mortgage answers.
www.jc-capital.net


Lower Payments

Search MortgageSector for Low Rate Loans! Get Info & Apply online here.
www.mortgagesector.com


Save Online

Compare offers on interest on adjustable mortgages. Get Started now!
www.rateadvisors.net

 


By visiting Allie Mae you have taken your first step toward becoming an educated borrower. Allie Mae is an objective, independent source of information for the mortgage consumer. Whether you are buying a home, refinancing, taking a home equity loan, building a home or in need of a mortgage for any purpose, Allie Mae is here to help. Allie Mae has helped thousands of people with their mortgage needs. We have a complete selection of articles, charts, calculators, and checklists designed to help you through the mortgage and home buying process.

© 2004 Copyright AllieMae. All Rights Reserved.
Privacy Policy   Legal  Terms & Conditions   Webmaster   Site Map    Application
About   Contact Us   Forum   Dictionary   Calculators   Articles   Free Content