This is some great information from Tagrid on some myths as it pertains to credit scores. Great points and very concise. Thank you Tagrid for the great information!
Your credit scores are one of the most critical pieces of your financial life. Whether it’s a utility company, car dealership, auto insurance, business loan, home loan, landlord or employer, they all utilize your credit score as a factor for credit risk.
How valuable is your credit score?
First and foremost, bad credit can cost you thousands of dollars per year. Not only will you pay higher interest rates and fees, getting approved for any type loan is quite challenging with lower credit scores.
You may want to check your credit scores without getting a penalty for a credit inquiry at http://www.truecredit.com/ This site is owned and secured by Transunion.
Also, make sure to avoid these 8 credit score myths:
- Myth Number 1: Your age and sex are part of your credit score - None of these factors affect your credit score.
- Myth Number 2: Just because you have a high salary, doesn’t necessarily mean it’s a supplement to your credit score - Salary is not a part of your credit score factoring
- Myth Number 3: When you get married, your scores are merged together - Good credit or bad credit is your credit and yours only
- Myth Number 4: You don’t need to check your credit if you pay your payments on time - Fact: 80 percent of all credit reports have erroneous information ranging from a wrong birth date to accounts you never applied for
- Myth Number 5: All credit reports are the same - False: Most creditors favor other bureaus and report to only one, sometimes two and commonly to all three bureaus, Transunion, Equifax and Experian
- Myth Number 6: If you file for bankruptcy, your score is permanently ruined - Don’t file bankruptcy unless you have no other alternative with your creditors. Bankruptcy is a huge tarnish upon your credit report, however, rebuilding and restoring your credit is the key to better credit scores even with a bankruptcy reporting.
- Myth Number 7: Closing your old accounts will boost your credit score - There is no reason to update and close an old account if has not been reported for years, updating old accounts hurts your scores not help your scores.
- Myth Number 8: Do it yourself credit repair - Always hire a professional, for whatever financial or real estate concern you have. Never hire a professional that wears too many hats in their summary, (example: realtor, financial planner, insurance agent, etc. all crammed onto their title page or business card). At least get a recommendation for your real estate and financial needs that specializes with your request.
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Commercial Lending and Credit Specialist
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