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ere is a lot of information out there
about credit scores, and I'm having a difficult
time deciding what is myth and what is fact.
Can you help?
Great question. e list of myths and facts about credit scores is long. Let's begin here
and finish up in the winter 2021 issue in January.
1. Checking your credit report will hurt your score.
MYTH – It's important to check your credit report often to look for errors
and inaccuracies.
2. Your credit score is based on how much money you have in your checking
and savings accounts.
MYTH – Income matters for loan applications, but not for your credit score. e
amount you owe and your payment history are the two most important factors
that go into scoring.
3. Opening several credit cards within a short time can negatively affect your credit.
FACT – Applying for lots of credit in a short time could move your credit score
downward because it suggests that you are in credit trouble.
4. Credit card repair companies can fix your credit when you can't.
MYTH – ere is nothing that a credit repair company can do for you that you can't do
for yourself. No one can remove accurate information from your credit report.
5. Closing a credit card will help your score.
MYTH – Scoring models don't measure risk by how much credit you have available,
but rather by how much of that credit you are using. About a third of your score is
based on the ratio of credit used to total available credit.
YOU ASK – WE ANSWER!
Money Repair
To address other financial questions, call Redstone at 256-722-3796 or
email aspire@redfcu.org.
