Credit Infocenter

Myths Debunked for Credit Repair in 2012

Written by: Kristy Welsh

PHOENIX, AZ--(Marketwire - 12/28/2011) - If you're looking to repair your credit in the New Year, make sure your game plan does not include any of the following false assumptions. "Though there is no better time than now to improve your credit report," says's Meredith Simonds, "if you're not careful, you could do your credit score more harm than good."

Myth #1: Close Old Accounts.Deleting accounts could mean shortening your credit history, a key factor in how your credit is scored. It's definitely true that the older your credit history, the better. Deleting accounts also negatively affects your potential utilization rate (i.e. available credit vs. how much you are using). The less available credit you are using, the better.

Myth #2: Open Many More Accounts. While your credit score is helped by opening up new accounts on occasion, opening numerous accounts is harmful. While with the more accounts you have you will have a greater and favorable utilization rate, creditors will wonder why you need so much credit.

Myth #3: Pay Off Your Delinquencies. While it may feel good to pay off old debts, keep in mind that "late payment," "charge-off" and "in collection" marks will remain on your credit report. That is, unless you ask your creditors to remove them as a condition for making the payment.

Myth #4: Pay Before the Due Date. Again, while it may feel good to pay off your balance before the due date, it will make no difference to your credit score unless you do so before the closing statement date.

Myth #5: Treat All Delinquencies as the Same. While it is by no means favorable to have any delinquent debts, some are less harmful than others. For instance, it is less damaging to your credit if you pay late on credit cards, than paying late on mortgage and car payments!

Founded in 1997. is a one-stop destination for consumers looking for free advice on repairing bad credit and rebuilding good credit. It advocates the self-help approach to credit and debt management. Kristy Welsh is the editor and founder of, as well as the author of several books on personal finance, including Good Credit Is Sexy.