My Credit Score Myths and Fallacies

Credit score report are numbers that aid lenders in identifying how you meet with your credit payment schedule. However, many fallacies on credits scores are spreading that might cause you money when exposed to such wrong information. Here are some of the credit score myths you should know and avoid.

	A person has only one credit score. This is the most common mistake. A person has 3 report credit scores coming from three main credit reporting agencies namely Experian, TransUnion and Equifax. Each uses the same FICO credit score rating but differs in results due to the different account data that is available to each agency
	Credit scores is from 0 to 1000.The correct range is from 300 to 850.
	Closing accounts improves credit score. This is contrary to recent credit score ratings. Closing old accounts lowers your score because of two reasons – (a) it increases percentage of your on-hand credit and, (b) makes your credit record look shorter which is an important factor that makes up your credit score.
	Credit counseling hurts your credit score. It instead helps you if you are undergoing payment troubles. FICO credit score does not consider this since they found out that people who turn to credit counseling reduce the risk of default on debt payment.
	Spouse’s credit score affects your score. This is not so since each credit score rating of a person is 100% independent of another.
	Nothing can be done if you have mistakes in your credit report. If this affects your score, consider credit repair to fix it.
	Income and personal characteristics affect your score. Income decreases or increases does not affect your credit rating so as demographics like age and education.
	Checking your credit report affects your score. There are two types of inquiry: soft and hard. Soft inquiry is checking your own report and score; while hard inquiry involves lenders checking your report. The hard inquiry is the ones that count against your score, but consider that multiple inquiries made within a 14-day period are counted as only one inquiry.
	Credit scores could not be improved. Having an average credit score does not mean you could not improve it. Consider that a small increase in your score may grant you significant advantages in real world. On-time payments and using only a portion of your available credit are some of the ways to help you improve your score
	You can pay companies to eliminate negative information on your credit report. This may be a quick alternative to getting high credit scores but there’s no such companies that promise to do so., and if there are, avoid them. Negative data is part of your report and a better way to deal with it is to correct it and identify the fake from the accurate listings.
	Receiving plenty of credit offers damages your credit score. Receiving many pre-approved offers does not affect your score unless you apply for it.

Now that you know the most common myths surrounding credit scores, you should have a better understanding of how it works and how your actions affect it. The best way to boost your credit score is by being guided with the correct steps that affect your credit score rating – on-time payments, low credit balance,  paying off debts, checking credit score interpretation regularly, and opening only new credit accounts when you need it. This way, you are on for a higher credit score rating which you can use to your advantage.