If you read into the topic enough, you’ll find that the internet is chock full of horror stories that tell you that your credit score is suffering each day that you’re not well informed about it. Well, what if I told you that you can relax a little bit and worry less about what you read? Right here and now we’ll go over the top seven most frightening credit myths that have less than an ounce of truth to them. Get the real answers you seek and stop being such a worrywart!
Closing An Old Credit Card Will Shorten Your Credit History.
This is one of the most well-spread credit myths that’s completely false. If you happen to close an old credit card, your score won’t be lower because of a reduced history. In fact, if the old card you close is in good standings when you do so, it will make your credit better and it will exist on your credit report longer than a negative entry. When you close an account that has no late payment history, it remains on your credit for ten years and that can do wonders for your score, according to Credit Bureau Experian. If you close a credit card account while you’ve got an outstanding loan or another credit card balance floating around, your credit utilization ratio will be heightened and that will affect your score negatively.
Checking Your Own Credit Will Reflect Badly On Your Credit Score.
It’s definitely true that several credit checks can put a ding in your score depending on the circumstances, but believing that you can harm your credit by having a look at your score yourself is another one of many big credit myths. You could feel free to check your credit score every single day and you won’t do any harm whatsoever. It’s actually a good idea to check your credit score about every six months to be sure you catch any fraudulence or errors as soon as possible.
- The faster you take care of those things, the faster you’ll see your credit improve.
Credit Bureaus Will Be Notified If You Seek Help From A Credit Counseling Agency.
If you go to a credit counselor for simple advice about your situation, that information won’t be reported to credit bureaus and you won’t see any change in your score because of it. Now if you choose to settle your debts for less than half of the full amount owed, your score may see some negative changes and if you’re ever late on payments, the same is true.
Your Low Earnings Equal A Low Credit Score.
The amount of money you make has no bearings on your score. This is another one of those credit myths that doesn’t have a leg to stand on. Your credit score is directly tied to your ability to afford the bills that come your way.
- You can make six figures and have horrible credit or a minimum wage and have pristine credit.
Paying Off Credit Card Balances Will Stall Any Increases In Your Score.
This is one of those credit myths that many people have been fooled into believing. The best way to handle your credit card bills is paying them off in full every month. As long as you have activity on them, this information is reported to the bureaus and paying off bills in full only makes you look better. If you have a pretty high limit, you don’t want to max it out every month: keep your bills low enough that you can attend to them regularly.
Shopping Around For Rates Will Kill My Credit Score!
Loan shopping, like for a car or house, is just about the only time you can visit many creditors and not have your credit damaged. Because finding the best interest loan is of the utmost importance, the credit bureaus usually overlook this activity for the thirty days prior to scoring.
- To keep your credit score at its best, stick to a month or less for finding a suitable loan.
I Won’t Get My Dream Job If I’ve got A Low Credit Score.
One of the silliest credit myths of all time is the one that says that jobs are withheld from qualified candidates for the credit score they’ve got. It’s illegal for employers to use credit scores as a criteria when screening prospective employees. Although they can see your credit report with your permission, they never get access to your credit score and it wouldn’t make that much of a difference anyhow.
- They don’t even get your entire history when they request your credit report, and all they’re looking for is signs of irresponsibility that might tell them something about your character or personal ethics.
Don’t let those credit myths keep you in fear! Make the best decisions you can and forget about all those credit myths!