Credit is a concept that many Americans struggle with. Although various theories exist, the most effective way to build credit is to make timely payments and keep the balances low. Here are six common credit myths that you should be aware of: 1. You have one single credit score. Although the three major credit reporting… Read More
Credit can be a tricky thing — some behaviors are obviously harmful to your credit, like paying late (or not at all), or maxing out your cards. But some mistakes aren’t all that obvious, and in fact some actions that might seem beneficial can actually have a terrible impact on your credit. We’ve compiled the… Read More
Bankruptcy is undeniably one of the worst things — if not the worst thing — you can do to your credit, typically causing a credit score loss of more than 200 points. However, you can minimize the impact and hasten the recovery of your credit through better awareness of how credit scores treat bankruptcy. To… Read More
When one year ends and another begins, it’s hard not to look ahead and strive to do better. And when it comes to credit, we’re definitely creatures of habit. We resolve to spend less, but open store credit cards anyway. We vow to pay off debt, but only put down the minimum due. We aim… Read More
Learning the rules of credit isn’t always as straightforward as you might think. Sometimes, doing something you might think would be great for your credit score can actually have an unintentional negative impact. The first step in understanding what affects your score is to know where you stand by pulling your free credit report once… Read More
It seems every few days I get a call or an email question from a consumer about the FICO score impact of paying off or paying down a collection account. The prevailing opinion is that paying a collection somehow makes it look like a new collection and thus lowers your scores. This is a current myth based on a past truth. There was a time when paying a collection would lower your scores, but not any longer.
My presentation was called “Credit Myth Busters.” We covered sixteen of the most common credit myths with a fun “true or false” format.
By saying “Bad Credit? No Credit?” the Burger King card is posing as a deal that would require a credit check and that would in turn be something that could help boost your credit history. The ad makes it seem like the BK Crown Card is a real credit card. Someone who is already struggling with their credit would be very tempted to “apply” for this card, not realizing that is just a gift certificate in disguise.
My current credit score is about 780. However, I just received a bill for about $4,700 which I consider to be severely excessive and I want to dispute it. How will my credit rating be affected? I have been told that I can write a letter to each credit bureau explaining that the bill is in dispute and that this will be posted for each inquiry into my credit rating. Supposedly, the overall effect on my credit rating would be minimal. Is this another myth?
I can’t believe that I still hear this credit myth all the time. After five years in the credit industry, I’ve helped educate consumers on all sorts of credit and personal finance topics. Most of it has stuck, people now know that they have credit scores and credit reports and understand the basics of how the system works. But there is one myth that simply will not die