Arizona Tribune - 7 Myths About Credit Score Checks You Need to Stop Believing

Myth #1: Checking your own credit score hurts your score

Checking your credit score through a credit monitoring service like MyFICO® or getting annual credit reports from the major credit bureaus, does not hurt your credit score. It's considered a "soft inquiry," and soft inquiries do not impact your credit score. Hard inquiries, which are initiated by lenders when you apply for a credit card, mortgage or auto loan, do impact your score. They can stay on your credit report for two years but typically it is more like one year.

Myth #2: You need to carry a credit card balance to have a good score

Carrying a balance on your credit cards can hurt your score, especially if you're not paying on time and in full each month. If you pay your credit card bills in a timely manner, it might actually improve your credit score.

Myth #3: Closing old credit card accounts will improve your credit score

Closing old credit card accounts can sometimes negatively impact your score depending on the circumstances. A closed account will be visible for up to seven years on your credit report if you close the card with a $0 balance, and up to 10 years with a positive balance. But the main way your credit will be hurt by closing a card is the impact it will have on your credit utilization ratio.

Myth #4: Only lenders check your credit score.

While lenders like banks, mortgage companies, and landlords most frequently use credit scores, other entities may also access your credit report. This includes:

• Employers

  • Insurance companies

  • Utility companies

Myth #5: Rent payments don't affect your credit score

While traditional rent payments may not directly impact your credit score, there are now services that report rent payments to credit bureaus, like RentReporters. This can help build credit if you have a limited credit history. All three major credit bureaus do accept rent payment information if they receive it. Not all versions of FICO^® Scores use rent payments but newer versions including FICO^® Score 9 and FICO^® Score 10 do consider it if it is in your credit report.

Myth #6: You can only check your credit score once a year for free.

You can get your credit score for free on a regular basis from credit card companies, lenders and other financial institutions. Some score providers, like myFICO, offer a one-bureau free plan where you can get monthly updates for your FICO^® Scores.

Myth #7: Disputing errors on your credit report is a waste of time

Disputing errors on your credit report can be a huge benefit to you, if you have the patience to do it. According to a study from Consumer Reports, nearly half of those who checked their credit report found at least one error. This incorrect information can significantly impact your credit score and limit your access to credit and can be corrected or contested with the appropriate credit bureau.

Mastering your credit score check
With facts and not fiction, you can get a handle on your credit score - because the better you know your score, the more likely you are to try and improve it. Whether you're on your own or using a credit monitoring tool like MyFICO®, with just a little knowledge and a plan, you'll be in good shape.

Disclaimer: This content is sponsored by MyFICO® and is provided for informational purposes only. The information shared here is not intended to serve as financial, legal, or credit-related advice. Readers are encouraged to consult with their personal financial advisors or credit professionals to assess their specific situation. To learn more about MyFICO®'s services, including credit scores and monitoring tools, please visit the MyFICO® website or reach out to a MyFICO® representative.

CONTACT:
Sonakshi Murze
Manager
[email protected]

SOURCE: iQuanti

View the original press release on ACCESS Newswire

A.Anderson--AT