Credit Reports: Credit Score Myths
Click Here for a Free Copy of Your Credit Report
There is a lot of misinformation out there about credit scores. This article clears some of it up by busting several credit score myths.
Credit Score Myth #1: Checking Your Credit Hurts Your Score
This is a common credit score myth that is completely wrong. When you check your own credit report, it does not hurt your credit score or lower it in any way. In fact, many financial experts recommend pulling your own credit report at least once per year.
Credit Score Myth #2: Multiple Applications for Credit Hurt Your Score.
Not necessarily. Applying for new credit does tend to lower your score slightly, but any inquiries that are made within a 45-day period are treated as one inquiry. If you will be applying for new credit, and anticipate multiple inquiries, just make sure they are all done within the same 45-day period and you can easily avoid any problems.
Credit Score Myth #3: Closing Accounts Raises Your Credit Score
There are so many people who think that this credit score myth is true, but it is not. Closing accounts will not raise your credit score. In fact, it may do the opposite and lower your credit score. When you close an account, your total available credit shrinks and any credit balances that you have on other accounts look larger. This is a sure-fire way to lower your credit score. Rather than closing accounts, simply pay the balances down and keep the accounts open to maintain a long credit history.
Related Business Management Articles:
How to Dispute Mistakes on Your Credit Report
Monitoring Your Credit Report
Obtaining a Free Credit Report
Sample Credit Dispute Letter
What Your Credit History Says About You