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6 misconceptions affecting your credit scores

Your credit scores play an important role in your ability to obtain credit.

Be careful of "Quick fix" promises by credit repair organizations. #CREDIT



6 misconceptions which could hurt your credit score

According to Equifax, if you're trying to improve your credit, here are 6 misconceptions which could be holding you back.

  1. Checking your credit reports or credit scores will hurt your credit scores. False. Checking your credit score reports or credit scores does not impact your credit score. In fact, it may be a good idea to check them regularly.

  2. Having a credit card - but not using it - can positively impact credit scores. That depends on multiple factors, including whether you are carrying a balance on the credit card. If it's paid off, it may help lower your debt to credit ratio. Additionally, if the card is one with the most use, it can help show a longer credit history. However, after a certain period of time of non-use, the credit card issuer may close the account for inactivity which may negatively impact credit scores.

  3. Applying for a new credit card will not impact your credit scores. Applying for a credit card generally results in a hard inquiry on your credit reports, which can impact credit scores.

  4. Carrying a small balance on your credit cards is a good idea when it comes to your credit scores. Carrying a small balance on your credit cards can affect you in a couple of ways. One, you will likely pay interest on the cards if you don't pay them off each month. Two, Lenders and creditors generally like to see a low debt to credit ratio.

  5. There is nothing you can do about inaccurate or incomplete information on your credit reports. If you see account-related information on your credit reports that's inaccurate or incomplete, consider contacting the lender. You can also file a dispute for free with the credit bureau or bureaus reporting the information on credit reports.

  6. Paying for credit repair will help my credit scores. There is no such thing as a "quick fix" when it comes to credit reports and credit scores. Be careful of credit repair companies claiming to erase credit problems or remove situations like bankruptcies from your credit reports.

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