Your credit score is one of the most important pieces of information in your financial life. You should probably know the truth behind some of its most common myths.
Myth 1 – You have one credit score. Actually you have three, one from each of the three major credit bureaus. These score can vary by 50 points or more, so make sure to check all three.
Myth 2 – Checking your own credit will lower your score. You can check your score as many times as you want without any impact. Just make sure you check it through a legitimate source like www.myfico.com rather than a car dealership.
Myth 3 – Your age, income and sex are factored into your score. None of this information has any affect on your score.
Myth 4 – A higher salary will boost your score. Earning more money will not improve your it, only by paying off debts can you improve you score.
Myth 5 – To remove unfavorable info just dispute it. If there is information in your report that is legitimately inaccurate, you should by all means dispute it. Getting rid of inaccurate information can sometimes improve your score dramatically.
Myth 6 – Shopping around for a loan hurts your score. While it’s true that too many inquiries to your credit will lower your score, you absolutely can shop around for a mortgage, home equity loan or car loan without worrying about damaging your credit. As long as the same kind of inquiries are made within 14 days of each other, they count as one inquiry on your credit score.
Myth 7 – Credit card offers are hurting your score. Credit card solicitations, while annoying, don’t affect your score. Myth 8 – When you get married your credit scores are merged. Your credit score will always be “your” credit score.