There is a wide array of myths floating around about what you should and shouldn't do to manage your credit. These fallacies stop here….

Your score will drop if you check your credit
Myth. Checking your own report and score is counted as a “soft inquiry” and does not drop your credit at all. Only “hard inquiries” cause your score to decrease. A “hard inquiry” is when you apply for credit and a lender checks your report and score. Don’t let this stop you from shopping around; multiple inquiries for the same purpose within a short amount of time (week or so) are grouped together into a less harmful inquiry.

Closing old accounts will improve your borrowing power.
Myth. To close or not to close???? Many people suggest closing old and inactive accounts as a way for improving your credit. In the majority of cases, closing accounts will actually have a detrimental effect. Closing old credit accounts can lower your credit score by making your credit length history appear shorter. Do not close the oldest account on your credit report.

Once you pay off a negative record, it is removed from your credit report
Myth. Negative accounts such as collections, bankruptcies, charge offs, repos, and late payments will remain on your credit report for 7-10 years. Many consumers do not realize even after you have a "paid" the collection will remain as a negative item to your credit rating. If you do not negotiate your credit rating your score will remain about the same as prior to paying them off. The only positive is that if a lender chooses to look into your report it shows a positive action.

Being a co-signer doesn't make you responsible for the account
Myth. When you co-sign or open a joint account with someone you are taking on legal liability for the account. Activity on these accounts will show up on both people’s credit reports, negative or positive. If you co-sign for an acquaintances auto loan and they don't make the payments it adversely affects your credit. The only way to stop this double reporting is being officially removed from the account.
 
Paying off a debt will add 50 points to your credit score
Myth. Your credit score is calculated using algorithms that takes into account hundreds of factors and values. It is next to impossible to assign a exact point value to anything.