The Myths of Credit Score

Most of us do not understand or know what our credit score. Your credit score is the most important piece of information in your financial life. The owners, lenders, insurance companies, power companies and potential employers have all your credit score under the microscope.

That said, you should probably check your credit score regularly. Check it for errors, identity theft potential and improve your scores over time. The secret to a better credit score is to pay your bills on time and keep your credit lines as low as possible.

Do not fall into one of these common credit score myths:

Checking my own credit will lower my score. You can check your credit report as many times as you like. These are considered as flexible traction and have no impact on your score.

Commercial lenders will lower my score. No doubt each lender you application will check your credit to accurately make a decision. Credit bureaus realize and understand that most people will get multiple quotes when buying expensive items like houses and cars. Therefore these types of inquiries made within 14 days are counted as one inquiry.

There is a credit score. There are three credit bureaus. Experian, Equifax and TransUnion. Each office generates a score so you have three credit scores. Each score will vary its good to know all three scores.

Age, income, gender and race will affect your score. None of this information has no impact on your credit score. Your age and your employer may be listed on your credit report, but it has no impact on the score itself.

A simple letter disputes will remove bad credit. Sorry, but it cracks me up. If it is a legitimate account being reported accurately, it will not be deleted regardless of the number of letters that you submit the contest. If you see any errors on your credit report, you should by all means challenge. The credit bureaus have 30 days to respond and are quick to remove inaccurate data.

The wedding will merge the two reports. Credit information from mixing. The accounts are to be opened individually or jointly. Do not think of marrying someone with good credit will increase your credit score.

We recommend that you check your credit quarterly. Refer to the number one myth, gentle traction will not lower your score. It is to your advantage to keep an eye on your credit, protect and improve constantly.

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