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Credit Myths |
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There are many myths in our society that allot of people
take at face value to be truth.
Some of these myths affect your credit...in a big way.
Myth #1
If you pay cash for everything, you'll have a good credit
score.
Paying cash for all your purchase does not only not improve
your credit score,
it can prevent you from ever even building a good credit
history. The bottom line
is that you need to establish some sort of credit account
and use it wisely. |
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Did You Know? |
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-Checking Your own Credit report will not lower your
score.
-Reviewing your credit report is one of the best ways to
prevent Identity Theft.
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Even if you pay off all your purchases from a credit card every month so
that you don't accumulate interest you will be miles ahead in the credit
game, well beyond someone who never establishes any credit.
Myth #2
All of your credit reports are the same.
Actually, with some degree of certainty, you can bet that all the major
credit reporting companies have a different version of your credit on
file.
This is why it can be good to pull a tri-merge credit report that allows
you to see your
entire report for all the major credit reporting companies and your
credit
score.
When you see differences, like a credit account that is not listed on a
report and has a good payment history you can request to have it added
to boost your credit score.Access your credit report from the big three major credit bureaus, Trans Union, Experian and Equifax all on one easy to read report. Start here
Myth #3
Closing unused credit account will improve my score.
Absolutely not! Most credit scoring methods take into account, by a
significant degree, the percent of the credit you are using when compare
to the amount of credit you have available to you. If you close account
with little or no balances and have other accounts with outstanding
balances, your debt usage percentage will actually look worse, and lower
your credit score.
Myth #4
Having a Checking Card or Debit Card will Help your credit.
While many people think that debit cards do help your credit because
they have the Visa or MasterCard logo on them they only pull money from
your own checking account and therefore are not lines of credit and do
not show up on your credit report.
Get a free credit report, a credit score and a debt analysis, all on your desktop in seconds, click here
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