Considered one of many first points I quickly discovered as soon as I began the tactic of fixing my credit score rating was that a lot of the problems I had heard about credit score rating have been totally false.

Frequent Credit score rating Myths

Here is a list of the commonest myths about credit score rating:

  1. Canceling Credit score rating Enjoying playing cards Will Improve Your Credit score rating Ranking – FALSE
  2. Paying Down Installment Debt Will Improve Your Credit score rating Ranking – FALSE
  3. There Is Solely ONE Credit score rating Ranking – FALSE
  4. You Have To Wait 7 Years For a Damaging Entry To Be Eradicated – FALSE
  5. Defending a Credit score rating Card Steadiness is Good For Your Credit score rating – FALSE
  6. When A variety of People Apply for a Mortgage, All Credit score rating Scores Are Thought-about – FALSE

Canceling Credit score rating Enjoying playing cards Will Improve Your Credit score rating Ranking – FALSE

That’s untrue for the simple undeniable fact that one among many largest determining parts of your credit score rating score is age.

In several phrases, by closing financial institution card accounts, sometimes, you could be shortening your widespread credit score rating account age.

Many events that’s urged by credit score rating counselors for people who cannot administration their spending, nonetheless, this does not translate proper right into a credit score rating score enchancment by closing accounts.

Paying Down Installment Debt Will Improve Your Credit score rating Ranking – FALSE

Paying down installment loans harking back to scholar loans, non-public loans, and mortgages will not improve your credit score rating score. Briefly, FICO does not care in regards to the amount of the mortgage –merely that it’s being paid on time.

I Solely Have One Credit score rating Ranking – FALSE

The actual fact of the matter is, sometimes, you have gotten THREE credit score rating scores.

Certain, there are three fundamental credit score rating corporations and whereas FICO makes use of the similar approach to calculate your credit score rating score between corporations, there are sometimes minute variations between each credit score rating report you have gotten with these three corporations that translate into three completely totally different scores.

What does this suggest? It signifies that your creditworthiness partly relies upon which credit score rating report happens to be pulled everytime you apply for credit score rating.

A Damaging Entry On a Credit score rating Report Can’t Be Eradicated Until The Required 7 Years Is Up – FALSE

There are a variety of methods which you can also make use of to remove unfavourable entries out of your credit score rating report.

In actuality, I can say that the worst (credit-wise) devices on my credit score rating report I acquired eradicated by sending off different letters.

Try to barter with the free negotiation and dispute letters I provide to my readers.

Holding a Credit score rating Card Steadiness Is Good For Your Credit score rating – FALSE

Actually, it’s the opposite. Whereas it’s good to have financial institution card train, one of many easiest methods to boost and hold an excellent credit score rating score is to keep up each a very low steadiness or no steadiness the least bit.

When A variety of People Apply For a Dwelling Mortgage, ALL of Their Credit score rating Scores Are Taken Into Account – FALSE

If, as an example, you and your accomplice are making use of for a home mortgage, the one credit score rating score that points is the person with the HIGHEST income.

Remember: That’s regular apply. Some lenders do take all debtors into account.