5 Credit Myths Debunked

155571883When you planning to purchase a home and apply for a mortgage the first thing to work on is your credit score.  It is important that your credit score be higher than 620.  Sometimes it is possible to get a mortgage with a lower credit score but it is much more difficult.  Here are some myths that you probably have always thought were true.  Make sure you are not guilty of one of these when you are working to build your credit score.  Many credit card companies now print your credit score each month on your statement.  This is a great way for you to keep track and hopefully watch it rise as you do the hard work necessary to repair your credit.

Source: TransUnion
Reprinted with permission from RISMedia. ©2016. All rights reserved.

There is a wealth of misinformation about credit—in fact, credit users, even those who check their scores often, incorrectly believe age, employment history and salary factor into a credit score, according to a recently released TransUnion survey.

“Checking your credit score is an important component of financial responsibility, but consumers should do more,” said TransUnion Consumer Interactive President John Danaher in a statement on the survey. “Our survey shows that even those who monitor their credit are only skimming the surface of their credit report and often don’t understand the factors that comprise their credit score.”

The most common misconceptions both credit-checkers and non-credit-checkers should know, according to TransUnion, are:

Myth: Checking my credit report will lower my score.
Checking your credit report will not impact your score—a lender checking your report, however, may.

Myth: Using my debit card will boost my score.
Use of a debit card does not reflect your credit habits, and, thus, will not impact your credit score.

Myth: My salary factors into my score.credit cards
Your salary will not impact your credit score, but a lender may factor it into the decision to approve your loan.

Myth: My credit card bill can be paid late, so long as it is paid.
Paying your credit card bill late will impact your score—late payments may remain on your credit report for seven years.

Myth: My credit score is all I need to know.
Checking your credit score is important, but so is checking your entire credit report. Assessing the full report not only helps you understand what impacts your score, but also helps you identify areas for improvement or errors.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a great credit score to help you get that mortgage to buy your dream home!


Comments are closed.