Credit report and credit score myths explained

Have you heard too much about credit reports, credit history and credit scores? It seems as if everyone has surly some advice for you. Some of the advices are right but some of them may be wrong as well. If you have some confusion about your credit report and looking for the answers of some of your credit report questions then you are on the right place where you are going to clear some of your credit reports and credit score myths:

1. Closing or canceling of existing credit accounts
   

   Some people have the misconception that closing down of some of existing credit accounts will help them to increase their credit score. But the fact is that closing some of your credit accounts will not help you but instead damage your credit score further because you will have shorter credit history then. So open few accounts that you can manage easily and in case you have opened too many accounts, you are just damaging your credit score as handing higher number of credit accounts is not going to be easy.

   
   


2. Checking my credit is going to harm my score
   

   Some people misconception that regular checking of your credit score is going to harm it is not true. But the fact is that you are going to harm your credit score in case you don’t check it regularly. By checking your credit score, you have better idea about the things that are going on with your credit accounts.

   
   


3. All of the credit reporting agencies gives the same credit score
   

   It is not true that all of three credit-reporting agencies Equifax, Trans Union and Experian give you the same credit score. All of bureaus offer you credit score on the basis of information reported to them. And since the credit reporting agencies are being help by different companies. So it’s not necessary that they all have the same information reported about you.

   
   


4. Marrying to someone with bad credit will lower my credit score
   

   Marrying to someone with a bad credit will have no effect on your credit score by the time you do not have a joint account. Both of you have different credit report and different credit scores. So your spouse credit history can never have an impact on your credit report by the time you have separate credit files.

   
   


5. My credit score will improve with my debt payments
   

   In case you haven’t paid your debt or made the late payments, that information is going to stay on your credit report for at least seven years. So paying your debt later will not help you in removing ‘unpaid debt’ from your report for seven years.

   
   


6. Too many credit card offers are hurting my credit score
   

   It’s not true that any credit card offer can have bad impact on your credit score by the time you don’t respond to them. Your response to every promotional credit card offer will generate several inquiries into your credit report and that will bring your credit score down.

   
   


7. I don’t need to check my credit report because I pay my bills on time
   

   This is not true that you don’t need to check your credit history in case you pay your bills on time. But the fact is that 80 percent of credit reports contain errors and 25 percent have errors serious enough to deny you any kind of credit. So check your credit report regularly.

   
   


8. Bankruptcy and foreclosures can’t be deleted
   

   It’s not true that bankruptcy and foreclosures can’t be deleted from your credit history. There are companies who specialize in deleting negative listing including bankruptcy and foreclosures.

   
   


9. I must have big income to make a big credit score
   

   Credit score has nothing much to do with your earnings. Credit score has much to do with your paying capacities. No credit score or credit report has your income mentioned. The issue with credit isn’t how much you are earning but has much to do with your repayment obligations. A person who earns $50,000 per year can have better credit score compared to a person who earns $300,000 per year.

   
   


10. What is a really good credit score?
    

    There are some misconceptions about a good credit score. Credit score of around 700 is really a good credit score. One should always aim at that score. With good credit score, you’ll have credit available easily and on lower interest rates.