While there is plenty of information online about credit scores, most people will not pay attention. This explains why there are many people who continue to read and believe in the harmful myths about credit scores.
Here are the most common credit score myths you should stay away from
Bad credit scores will last forever
This is absolutely false. The only time that the bad credit score will not disappear is if you continue to make poor choices that will hurt the score. making late payments, letting your bills go to collections and maxing out the credit cards are some of the things that make the bad credit last longer than it should.
Checking your score will give you a negative point
Many people will not check their scores for fear of losing points. The truth is, you can check on it as many times as you want as long as the services are open. Make sure you are checking with the credit card service and not other lenders.
You need to be rich to have a great credit score
The amount of money you have is only secondary when it comes to the credit score. Your income is definitely not a factor when it comes to the credit score. Bill payment habits play a big role in how great your credit score will come out. It does not matter than you do not have a lot of money, as long as you pay the bills on time the credit will come out great.
You can only have one credit score
Everyone can have several credit scores as long as they are working with different scoring models. Every major credit bureau has 3 credit histories.
Prepaid cards and debit cards help you build a great credit score
If you applied for either of these to try and improve your score, I have bad news for you. The history on the debit and prepaid credit cars is not included into the credit score. The only entities that primarily impact the credit scores are your loans and credit cards.
Closing the credit card will help improve the score
If you close the credit card, there are very high chances that this will hurt your credit score. if you close it with a balance, it actually makes the situation worse. If you leave the account open when they have a great score, you have better chances of improving it.
Paying off a collection will keep it from ruining your credit score
This is actually great at improving your score in the long run, but many people expect to see an immediate improvement. When you get the collection on your report, you will have to wait until the time limit for reporting runs out.
It takes up to 7 years to improve your bad credit
This is one of the biggest lie when it comes to improving your credit. While the most negative history like bankruptcy will remain on your history for close to 7 years, you can improve the credit score before that time.