Don’t check your credit too often! Always carry a balance from month to month! Close credit accounts you aren’t using! Using a credit counseling service will ruin your credit!
Have you ever heard any of these pieces of advice and believed them? If you have, don’t feel bad. Lots of people do. Credit scores can seem mysterious when you don’t know exactly how they are calculated. How do credit bureaus come up with credit scores, anyway? Understanding the truth about what affects your credit history and what doesn’t is important if you want your credit score to be the best it can be. You wouldn’t want to close a credit card account because you think it will help your credit score, only to find out that it had the opposite effect – which it can!
This infographic spells out the top twenty myths about credit scores and reveals the truth about each one. Whether you think that your age has an impact on your credit score, that your employment status counts toward your credit history, or that staying debt-free will guarantee you a perfect credit score, you may be surprised to find out that you’re falling for a myth. Here are the facts about what really matters – and what doesn’t – when it comes to your credit score.