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9 myths on how to build better credit

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Paying off delinquencies will restore your credit score
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Paying off delinquencies will restore your credit score

Nope. It will help, but don't expect a supersized boost, says Ulzheimer. That's because the delinquency will stay on your report, even if it has a zero balance.

Most derogatory information such as late payments, collection accounts, charged-off accounts, tax liens and judgments live on your credit report for seven years before dropping off. A Chapter 13 bankruptcy can linger on your report from seven to 10 years, while Chapter 7 bankruptcies remain on your credit report for 10 years.

"Don't expect your score to recover to what it was before the incident, because it ain't going to happen," Ulzheimer says. "The more important part is the incident."


 

 

 

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