Myth: If I pay off an old debt it will be removed from my credit report.

Fact: Your account history including late payments remain on credit reports for seven years.

Myth: If I co-sign a loan for a friend, it has no effect on my credit.

Fact: When you co-sign a loan it's as if you took out the loan yourself. If your friend fails to repay the loan, you are also responsible for repayment.

Myth: Creditors wouldn’t send me pre-approved offers of credit unless they were certain that I could manage the additional credit.

Fact: Creditors don’t determine how much debt you can comfortably afford to manage and repay. It’s up to you to decide your comfortable level of debt and not go over that level.

Myth: Credit is the main cause of financial trouble for most people.

Fact: Spending is what actually gets people into credit and debt trouble. Credit often makes it easier to spend, but credit itself is usually not the problem. The major problem is many people use credit so they can spend more than they make.