I admit that I am one of those people who believes anything I hear. When I was in my twenties I decided to open every store brand credit card there was. I could not pass up the deals and the idea of paying later was so exciting. I started spending and spending on my cards, and my limits were high enough that I could buy lots of items. At that point I stopped paying my minimum payments because there was no money left.
I thought if I just held off on those cards and stopped using them I would be okay. About a year or two after that, some family money came to me so instead of saving I used it to pay off all my credit card debt. When I paid off those debts I thought my credit score would be good as new again. That is they myth that I ran into. Your credit score does not repair itself naturally. Your credit score is about your history with credit, not current debt. Of course it helps to pay off all your debt and your credit score will change, but it won’t change drastically like I thought.
So for all of you out there who believe this myth, don’t. It takes time to improve your credit score. So, I would suggest making minimum payments every month so you don’t rack up finance charges.