Addressing Some Misconceptions About Rebuilding Credit

Tuesday, November 15th, 2011
Updated: November 15th, 2011
The content is accurate at the time of publication and is subject to change.

While it is very possible to repair your own credit if it has sustained damage due to divorce, job loss or bad financial decision making, there are a few common misconceptions when it comes to re-building a good credit history. Being aware of these credit myths will help make the process of re-establishing a positive credit history a little bit easier.

Myth: It’s too complicated to repair a bad credit score on your own.

If you are dedicated to improving your credit score situation and are willing to do some research and exert a little effort, it is quite possible to improve your score without any outside assistance from a credit repair professional. However, if you feel overwhelmed by debt do not hesitate to seek assistance. There are many wonderful not-for-profit associations available throughout the country that can help you do things like establish a realistic budget, consolidate your payments and negotiate with your creditors. The best thing to do is reach out to these types of organizations sooner rather than later, as once an account has fallen into default your options are more limited.

Myth: Negative events on your credit report remain there forever.

The truth is that it is possible to remove any kind of negative entry from your credit report, although some are more difficult to erase than others. Credit bureaus regard certain things such as unpaid debts and bankruptcies as “worse” than others, making them harder to remove. With regard to bankruptcy, realize that if you file it does not erase your credit report and allow you to start over from scratch. Instead, all of the debts that are included in your bankruptcy will be labeled as such on your report.

Myth: When a past-due account is paid off, it will no longer show up as a negative entry on your credit report.

In fact, when a delinquent debt, such as a debt that has gone into collections or been charged off by your credit card issuer, has been repaid its status changes to “paid collection” but it still remains as a negative entry upon your report. Negative activity remains upon your report for up to seven years, so if you pay off a delinquent debt it is wise to try and negotiate for it to be deleted from your credit report.

Myth: Building good credit offsets negative activity such as late payments.

Actually, having as few as one or two late payments reflected in your credit report can result in having your personal loan or credit card application denied by a lender. If you are currently holding a loan such as an auto loan, a late payment can send your rates soaring. No matter how much positive activity your credit report reveals, if you have any bad or negative activity it can restrict your borrowing opportunities immensely, which is why it is incredibly important to make all of your payments on time and to never, ever simply discontinue making payments. Seek help if you are struggling before you find yourself in a situation wherein you cannot pay your bills.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Bad Credit Cards Guides

Earning Rewards with Bad Credit: Dream or Reality? June 17th, 2022

Without a doubt, every credit cardholder is not averse to earning some rewards or other benefits while building their credit history. And everyone knows that almost all good or excellent credit credit cards can ensure this.

Continue »
Take These 4 Steps to Mend Bad Credit May 6th, 2022

It is absolutely true that bad credit can cause a lot of inconvenience and problems. Having poor credit history, you will not likely get approved for credit cards with great rewards and perks, high credit limits, and low APRs. Moreover, you may even face hardships while renting a house or looking for a job. Fortunately, […]

Continue »
6 Tips to Improve Bad Credit Score March 28th, 2022

If you have bad credit, you probably have already got to know all its fallouts. Most likely, you meet not only high interest rates on credit cards and denied applications but also difficulties getting a job, renting an apartment or purchasing a car. This is not the whole list. A bad credit score can seriously affect all spheres of your life.

Continue »
A Guide to Bankruptcy January 26th, 2020

You might have never thought of ever facing such a thing as bankruptcy. However, each of us may have things going the wrong way one day and stay with a huge unpaid indebtedness. No matter how scary it is even to pronounce the word “bankruptcy”, it doesn’t look like a good idea to just leave it where it is and put yourself in a debt trap. Especially since our government takes care not only of lenders but also of the borrowers. In case of financial difficulties, you will be protected by law.

Continue »
5 Bad Credit Score Myths You Probably Believe January 6th, 2019

Credit scores are incredibly important in order to do a number of things: rent an apartment, get approved for a mortgage, car loan, or business loan, and even to get a job. But as important as credit scores are to almost every adult who wants to live a full and rewarding life, many of us still don’t understand the basic facts about how credit reports work and what a good or bad credit score really means.

Continue »
Best Credit Offer
Surge® Platinum Mastercard®
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 All Rights Reserved.

See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.