7 Common Credit Score Myths

I recently received an e-mail from a local loan officer with the following credit information.  It is good information and certainly what I hear from buyers from time to time.  Good information!



When it comes to credit, knowing fact from fiction and understanding how to act is critical. Here are some common credit myths that may be preventing you from engaging in effective credit management:

Myth: My score will drop if I check my credit.

Fact: Checking your own reports and scores is considered a “soft inquiry” and has no negative impact on your credit score. 

Myth: Reviewing any one of my three credit reports occasionally will tell me everything I need to know about my credit standing. 

Fact: Occasional monitoring will give an incomplete snapshot of your credit standing. You should, instead, check all three of your credit reports and scores frequently throughout the year because the information and scores contained in each of those reports can vary at any given point in time. 

Myth: There’s only one score that all lenders use to determine my credit-worthiness.

Fact: There are literally hundreds of different scoring models used by lenders in the marketplace today. 

Myth: Closing old credit card accounts will clean up your credit reports.

Fact: Some people advocate closing old and inactive accounts as a way to manage their credit. In most cases, closing your older accounts will make your credit history appear shorter, which can negatively impact your overall credit standing.

Myth: Once you pay off a delinquent loan or credit card balance, the item is removed from your credit report. 

Fact: Negative information such as late payments, collection accounts and bankruptcies will remain on your credit reports for up to seven years. Certain types of bankruptcies stick around for up to 10 years. Paying off the delinquent account won’t remove it from your credit report, but it will update the account to indicate it as “paid.”

Myth: If I don’t pay a medical bill on time because I believe it is incorrect, I can’t be held accountable.

Fact: If you fail to pay a medical bill in a timely manner, the delinquent payment may be reported as late to a credit bureau. If you believe a medical bill you have received is wrong or was sent to you in error, it’s best to contact the provider to resolve or discuss the matter prior to the bill becoming past due. 

Myth: The “credit bureaus” report people as having either good or bad credit.

Fact: Credit reporting companies compile information that is provided directly and voluntarily by consumer lenders. If you have a credit card, home or auto loan, or make other monthly payments, details of your payment track record on these are likely being reported by those parties. 

For more details about credit myths, visit TrueCredit.com.    Courtesy of ARAcontent





About Michelle Nantz

There are many qualities and skills that go into being an excellent real estate professional: integrity, in-depth community and market knowledge, marketing savvy, effective negotiation skills, and a high-quality professional network ~ all of which are hallmarks of Michelle Nantz. In 2003, Michelle began her career in real estate, after a successful career in restaurant and hotel management with her last position as Regional Director of Operations running 56 hotels throughout two states. She owes her success in real estate and management to her expertise in people skills, managing, negotiating, and follow-up. However, it is Michelle’s dedication to quality service that she ultimately credits her success. Michelle shared, “In my experience as a Lake Norman real estate professional, I’ve found that providing the very best service is essentially about putting my clients first. This means keeping myself accessible, being a good listener as well as a good communicator, and responding quickly to their needs.” This “client first” philosophy combined with continual personal improvement and keeping up-to-date with the latest technologies is a cornerstone of both Michelle’s and Lake Norman Realty’s business philosophy. In addition to Michelle’s extensive real estate education and her experience in the local market, she is also an Accredited Staging Professional®, which brings additional value to marketing her clients’ homes. Michelle and her family have made the Lake Norman area their home for over 10 years. In her rare leisure moments, you’ll find Michelle with her three children and husband, or unwinding with gardening or reading. “I live and work in this community and only have the best interests of our community and its members in mind,” says Michelle. Her community activities include participation in Denver Days, Relay for Life and support for Christian Ministries and area schools.
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3 Responses to 7 Common Credit Score Myths

  1. Alex says:

    This article was awesome!! Thank you. Being fairly new to the credit repair and credit score arena I am constantly trying to gather as much information as possible to try and keep myself headed in the right general direction. Spending some time on this post has actually given me a lot of great points to think about. In my recent research I have also been able to find some useful information related to this topic when I Googled the credit locker university. This was helpful as well. Thanks again!

  2. Nelly Brown says:

    There is yet another credit score myth. People feel that their credit score will increase soon after paying off delinquent debts. This is not true. Your credit score will increase gradually. Also, a high credit-utilization ratio will not increase your FICO score. Rather, it will decrease your score. You can know more about this from here – http://www.myfico.com/crediteducation/factsfallacies.aspx

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