6 Myths about Credit Scores

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Real Estate Agent with The Lewis Team at Keller Williams Cal BRE #01352522

6 Myths about Credit Scores

6 Myths about your credit score

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When it comes to credit scores and FICO scores there is a lot of confusion about what actually impacts one’s ability open a credit card, finance a car or purchase a home.

Myth 1: Your credit score drops if you check your own credit.

Truth: Viewing your credit report counts only as a “Soft Inquiry” and doesn’t change the score. “Hard Inquiries” by a lender or creditor, can slightly lower your credit score.

Myth 2: You should close old or inactive accounts to help your credit score.

Truth: Closing accounts may actually have the reverse effect of lowering your credit score because it can shorten the measured duration of your credit history.

Myth 3: Paying off a negative record means it’s taken off your credit report.

Truth: Generally, negative records like collections or late payments will remain on your credit report for up to 7 years.

Myth 4: Cosigning doesn’t mean you’re responsible for the account.

Truth: If you open a joint account or cosign a loan, you will be held legally responsible for the account, meaning activity on the joint account is displayed on credit reports of both account holders.

Myth 5: Making on-time rental, utility and cell-phone payments helps my credit score.

Truth: While outstanding rental, utility and cell-phone debt that have gone to collections and can negatively affect your score, generally, on-time payments are not regularly reported to credit bureaus.

Myth 6: Your credit score reflects changes or trends in your payment behavior

Truth: Historically, credit scores have not incorporated trended credit information, meaning they are a moment-in-time glimpse at consumer risk.

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Rainmaker
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Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Some very helpful hints for the consumer to be aware of.

Nov 24, 2016 11:42 AM #1
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Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
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Thank you for passing along this helpful consumer info on credit score myths.

Nov 24, 2016 08:46 PM #2
Rainmaker
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Mike and Dawn Lewis
The Lewis Team at Keller Williams - San Diego, CA
The Lewis Team at Keller Williams in San Diego CA

Thanks Marco and Michelle!

Nov 25, 2016 12:46 PM #3
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Rainmaker
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Mike and Dawn Lewis

The Lewis Team at Keller Williams in San Diego CA
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