MYTH # 6: A co-signer is not responsible. In all actuality, a co-signer is as responsible as the signer on the account. In recent years, many mortgage applications were originated based on there being a co-signer, but in all actuality the co-signer was the primary borrower. This will also affect the “co-signers” credit report due to the fact it will show up on their credit report as a joint account and if the person that they co-signed for fails to make payments it will have a very negative effect on their own credit score and late payments will appear on their report.
Myth #7: If a judge in a divorce proceeding orders a spouse to pay a debt, it’s no longer affects my credit. Well the reality is that a judge’s orders do not negate the an existing contract. Make sure to close all existing joint accounts and make sure that they are paid in full on time even if the other spouse was ordered to pay and you have to pay them to keep your credit intact.
MYTH #8 : Piggy backing does not work anymore. It’s another myth.FICO 08 was supposed to change the way piggybacking rules were, which is based on authorized users, but they have since, decided to change that (lawsuit).
MYTH # 9: Opting out will increase your score. Opting out is where a consumer decides not to have their information sold for pre-screened offers.
MYTH # 10: Multiple auto or mortgage loan inquires will hurt your score for each inquiry. The truth is the score was affected with older scoring methods, but now you can have multiple inquiries for an auto loan in a 30 day period and 45 days for mortgage loans which will only count for one inquiry.
MYTH # 11: It will take 7 years to improve my score. Most negative items will remain for 7 years. There are however exceptions. Often times collections are sold and “reaged” and can stay on indefinitely. This is a violation of the FCRA and a credit expert can help remove these violations. Your credit report has no history or memory of your score. What is on one month can completely disappear the next.