Top Credit Score Misconceptions

Many Americans are mystified when it comes to their credit score. Do you sometimes wonder who’s really keeping track and what is it exactly that affects your score? There are many misconceptions when it comes to what really affects our credit scores. I thought I’d share an article from BudgetsAreSexy.com. This article lists and debunks the top credit score myths and misconceptions. Such as:

• When I get married, we get a joint credit score: Not so. Each person has their own credit score ’til death do you part—from your credit score that is. However, when you open accounts jointly, that information will be reflected on each of your credit reports, for better or for worse.
• My job/income impacts my credit score: Sorry, but making six figures, winning the lottery, or inheriting a fortune will not give you a good credit score. Your net worth and income are not factored into your score.
• Paying off credit card debt will boost my credit score 50 points: Depending on how much credit card debt you had, you may see some increase. However, credit card utilization is an important component of your credit score and those with the highest credit scores have about 10% utilization. This means if you are using your card (and of course paying off the balances on time) you should see an increase in your credit score.
• Being an authorized user on a credit card will impact my credit score: Co-signing for a credit card can have an effect on your credit score, but unfortunately just being an authorized user won’t change your credit score one point.
• I only have one credit score: There are different credit score providers and each credit bureau provides their own credit score. However, these companies all use the same criteria to judge your credit worthiness and the scores basically fall within the same range of each other (good, ok, or poor).
• Checking my credit score will lower my credit score: False. When you check your credit score at sites such as Credit Karma, it’s a soft pull so it won’t lower your credit score at all. Only hard inquiries by lenders impact your credit.

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