Understanding and managing your credit score has always been important. But when your purchasing a house it’s essential to know separate the facts from the myths. There are a lot of myths and misconceptions surrounding credit, and we’re breaking down what we think are the top 5 credit myths, while also giving you the truth.
Myth #1: Checking your credit score frequently will hurt or lower your credit.
Truth: Only “hard” inquiries or hard checks can ding your score a few points, but not if you check on your own, which is considered a “soft” check.
Myth #2: Closing an old credit card will improve your credit history.
Truth: Closing a credit card is more likely to hurt your credit score than to improve it, especially if you close the card with a balance.
Myth #3: Carrying a balance on your credit card will improve your credit score.
Truth: The only thing a running balance on your credit card increases is the interest you owe and certainly not your credit score. In fact, it only has the potential to lower your score and it will end up becoming a waste of money since you need to pay interest over time.
Myth #4: Getting married will merge your credit scores.
Truth: Even after you tie the knot, you and your spouse remain to be two individual entities with separate credit scores and credit histories. So just because you marry someone with a good credit doesn’t mean that your credit score will automatically improve. Likewise, marrying someone with bad credit won’t adversely affect you.
Myth #5: Having a good income automatically means a good credit score.
Truth: Your income does not directly affect your credit score. Also, it is never included on credit reports so it can’t impact your score.