8 Credit Score Myths

8 Credit Score MythsYour credit scores are one of the most critical pieces of your financial life. Whether it’s a utility company, car dealership, auto insurance, business loan, home loan, landlord or employer, they all utilize your credit scores as a factor for credit risk.

How valuable is your credit score?

First and foremost, bad credit can cost you thousands of dollars per year. Not only will you pay higher interest rates and fees, getting approved for any type loan is quite challenging with lower credit scores.

You may want to check your credit scores without getting a penalty for a credit inquiry at Equifax or Experian This site is owned and secured by Transunion.

Also, make sure to avoid these 8 credit score myths:

  • Myth Number 1:  Your age and sex are part of your credit score – None of these factors affect your credit score.
  • Myth Number 2Just because you have a high salary, doesn’t necessarily mean it’s a supplement to your credit score – Salary is not a part of your credit score factoring
  • Myth Number 3:  When you get married, your scores are merged together – Good credit or bad credit is your credit and yours only unless you have joint accounts or if you are an authorized user on a personal credit card
  • Myth Number 4:  You don’t need to check your credit if you pay your payments on time – Fact: 80 percent of all credit reports have erroneous information ranging from a wrong birth date to accounts you never applied for and unauthorized credit inquiries
  • Myth Number 5:  All credit reports are the same – False: Most creditors favor other bureaus and report to only one, sometimes two and commonly to all three bureaus, Transunion, Equifax and Experian and sometime Vantage
  • Myth Number 6:  If you file for bankruptcy,  your score is permanently ruined – Don’t file bankruptcy unless you have no other alternative with your creditors. Bankruptcy is a huge tarnish upon your credit report and credit scores, however, rebuilding and restoring your credit is the key to better credit scores even with a bankruptcy reporting.
  •  Myth Number 7:  Closing your old accounts will boost your credit score – There is no reason to update and close an old account if has not been reported for years, closing unused old accounts hurts your scores not help your scores.
  • Myth Number 8:  Do it yourself credit repair – Always hire a professional, for whatever financial or real estate concern you have. Never hire a professional that wears too many hats in their summary, (example: realtor, financial planner, insurance agent, etc.  all crammed onto their title page or business card). At least get a professional recommendation for your real estate and business finance needs that specializes with your request.

For more information on how we can best serve your personal credit and business credit in Palm Beach, Jupiter FL, please fill out the online contact form about your concerns or give us a call at 855.477.9007 . We are local Floridians. Read what people have to say about First Pro Capital on our Testimonials page.

Allow our team of  professionals  to assist you!

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