Credit can be a tricky thing — some behaviors are obviously harmful to your credit, like paying late (or not …
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credit myths
Bankruptcy is undeniably one of the worst things — if not the worst thing — you can do to your …
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When one year ends and another begins, it’s hard not to look ahead and strive to do better. And when …
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Learning the rules of credit isn’t always as straightforward as you might think. Sometimes, doing something you might think would …
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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.
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My presentation was called “Credit Myth Busters.” We covered sixteen of the most common credit myths with a fun “true or false” format.
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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.
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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?
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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
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Making a lot of money helps your credit score (False)
Checking your own credit reports harms your credit scores (False)
Paying off collection accounts doesn’t help your credit score (True)
Paying cash for everything helps your credit score (False)
Closing credit accounts will help boost your credit score (False)
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