ATLANTA -- The recent stock market crisis has everyone thinking about their financial future and top on the list of things that will affect your financial future is your credit score.

In Kim’s Cash and Credit Clean-Up consumer reporter Kim Fettig looks at the biggest misconceptions many of us have when it comes to our credit history.

At Georgia State University, students are studying for careers that will hopefully give them a secure financial future, but CBS 46 decided to test their knowledge about credit scores and credit reports.

“I try to keep it as high as I can so I know it will affect me later in life,” said Brooks Colton.

Last week Kim told you how to get two free credit reports a year from all 3 big reporting agencies, but many of you had questions about credit reports and raising credit scores.

Here are the top 5 myths about your credit.

1. Paying my debts will make my credit report instantly better.
“Not instantly but it will help in the long run,” said Colton.
Your credit report carries a history of your payments and any late payments, but paying your debts will raise your credit score
2. Cancelling credit cards boosts my score.
Cancelling all your cards will not improve your score. Future lenders want to see at least two or three pieces of active credit.
3. Credit counseling is bad for my credit score.
Going to a credit counselor or debt management program will not lower your score. It can be a good, free tool.
“There are plenty of opportunities for people to go out there and get free assistance,” said Steve Ely with Equifax.
4. Negative news comes off my credit score in 7 years.
Only some of it does. Chapter 7 bankruptcy can take 10 years.
5. FICO or credit scores are locked in for 6 months.

Your credit score updates every time the data on your credit report changes, which means you can always see credit clean up results quickly.

There is a calculator that can help you estimate your credit score at any given moment.

www.bankrate.com

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