Stop believing these credit score myths everyone seems to be telling these days

Many credit card holders have common misconceptions about their scores and aren’t aware of how credit scoring works. Because these numbers are quite important, everyone should understand exactly how credit scores work. Overcoming these myths would help you in maintaining and improving your credit score.

Why is Your Credit Score Important?

Your credit score has a huge impact on your ability to buy a home, get a loan, or even if you plan on buying high-quality appliances. FICO score above 670 is considered a good score.

Common Credit Score Myths and Misconceptions

But unfortunately, many credit score myths can cloud your judgment. Let’s take a look at some of them. 

Income Impacts Credit Score

People think that the more money they make, the higher their credit score gets. But the fact is, income doesn’t directly affect your credit score. FICO Points are calculated using various factors which are categorized as follows:

Your income is not a determining factor for your credit report. Income is only important for credit card and loan applications. 

Scoring Remains Same in Every Model

Some credit scanners scan your credit report at set times and take snapshots of what your credit report appears at that time. One of the models commonly used by lenders is VantageScore 4.0. It uses credit data that has been recently obtained from three national credit companies (CRCs), which differs from other models. 

Debit Cards Can Help Credit Scores

Choosing a credit option for your debit card only decides how the seller processes the card and what fees you pay.

don't believe these credit score myths

A Bad Credit Score Lasts Forever

Closing Unused Credit Card Improves Score

Some borrowers try closing their unused card thinking it would magically improve their scores. But that’s not how it works. If you don’t use a card, you can earn a huge amount of unused credit. So instead of closing the card, keep your account active and try to keep it in a safe place, since it is a credit grade asset. 

Final Verdict

If you want to fix your credit score, then stop believing in these credit score myths and start looking for a reliable and experienced credit repair company. Try Credit Repair Today. Credit Repair Today is a licensed credit repair company that provides credit assistance all across the United States.