Starting the month of February with some fun, lets dig deeper as we continue to study credit scoring and their impact on your finances, ability to qualify for a new loan and overall impact on your everyday life.
Why are rumors, urban legends and myths so durable? Remember the one where Bill Gates would give you $100 for forwarding an email? Or the one about it taking seven years to digest swallowed chewing gum?
The same thing is true for urban legends concerning credit. Because the credit reporting system is complex and rarely understood, rumors tend to fly about credit reports, credit scores and more. Here are some of the most popular credit rumors:
• Making a lot of money helps your credit score (False)
• Checking your own credit data harms your credit scores (False)
• Paying off collection accounts doesn’t help your credit score (True)
• Paying cash for everything improves your credit score (False)
• Closing credit accounts will help boost your credit score (False)
• Insurance and utility companies use your credit data to determine rates (True)
• Once you have poor credit, you are stuck with it for seven years (False)
• Debit cards can help boost your credit score (False)
• You can opt-out of pre-approved credit card offers (True)