05/21/2023
There are many myths surrounding credit scores that can lead to confusion and even harm your credit. Let's separate fact from fiction.
💠 Myth #1: Checking your credit score will hurt it.
Fact: Checking your own credit score is a "soft inquiry" that does not affect your score. However, applying for credit and having a lender check your score can result in a "hard inquiry" that may lower your score slightly.
💠 Myth #2: Closing credit accounts will improve your score.
Fact: Closing credit accounts can actually hurt your score, especially if they have a long credit history or high credit limit. Keeping these accounts open and using them responsibly can help improve your score.
💠 Myth #3: Carrying a balance on your credit cards will improve your score.
Fact: Carrying a balance on your credit cards can actually hurt your score by increasing your credit utilization, which makes up a large portion of your score. Paying off your balances in full each month is the best strategy.
💠 Myth #4: Paying off collections will remove them from your credit report.
Fact: Paying off collections will not remove them from your credit report. They will remain on your report for up to 7 years from the date of the first delinquency. However, paying off collections can improve your score by showing that you are taking responsibility for your debts.
By separating fact from fiction, you can make informed decisions about your credit and take steps to improve your score. Remember to regularly check your credit report for errors and to use credit responsibly.
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