Five Credit Myths You Should Know About

1.  You can improve your credit rating by closing your credit card accounts.

MYTH! Closing your credit card account influences the cutting down of the age of your credit account, which is one of the primary decisive factors of your credit rating. Your credit score, therefore, will not improve once you decide to close your credit cards.

2. You can improve your credit rating by settling your installment loans.

MYTH! Accomplishing installment debts will not improve your credit score. The detail with influences on your credit rating is not the total amount of money you spent for the debt, but the time you paid off the debt. Actually, credit report agents are only concerned with determining whether you paid for your debt before the deadline or not.

3. Having only one credit score is natural.

MYTH! In reality you can receive up to three credit scores. Each of the top three consumer credit report agencies in the country has its unique means of computing your credit rating. The computations prepared by the three agencies result to three credit scores with slight differences. All three credit scores are acknowledged by the Fair Isaac Corporation, which is the organization responsible for the calculation of your FICO credit scores.

4. If you get a negative marking on your credit report, then you can never remove it.

MYTH! A negative mark, may it be a late payment record or an existing liability item, can be erased from your credit record. You can initiate this by asking for a goodwill adjustment from your lenders or by testifying against the imprecision of your credit report.

5. It is possible to improve credit score through the maintenance of your credit account balance.

MYTH! It is actually the opposite. It is totally fine to retain credit card activity; however, it has no implications on your credit balance. Keeping a profoundly low balance or no balance at all is absolutely one of the most effective means to prolong a considerable credit rating and improve it.


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