Credit Cards Center Credit cards from our partners
Reply
Moderator
Posts: 29,960
Registered: ‎12-13-2013
0

Six credit score myths debunked

Interesting article I ran across.

 

"Could your credit score be the key to a better life?

Although 70 percent of consumers said having good credit is the key to unlocking the "American Dream," they are getting some basic facts wrong, according to Capital One."

 

http://www.cnbc.com/2017/01/24/six-credit-score-myths-debunked.html

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."
- Rhonda Byrne
Regular Contributor
Posts: 247
Registered: ‎05-12-2008

Re: Six credit score myths debunked

Myth: Holding a credit-card balance is good for your credit.

Fact: Generally it's better to pay your credit card bill in full and on-time every month. (Plus, that way, you avoid interest charges.)

 

Some poor person will read this, pay their revolvers to zero, and then wonder why their score dropped 20 points.


FICO 08:Jan 18, 2017: EX 800 EQ 725 TU 799
FICO 08:Feb 10, 2017: EX 788 EQ 772 TU 791 (post New Year's app spree)
In the garden as of 1/4/2017. Will remain for all of 2017.
Highlighted
Valued Contributor
Posts: 1,718
Registered: ‎03-03-2015
0

Re: Six credit score myths debunked

Myth: Closing unused card accounts is good for your credit.

 

Fact: The average age of your accounts is a significant part of your score; keeping your oldest cards open (even if you don't use them often) generally will help your score.

 

Of course a credit card company would state this. They don't make money if you don't keep your account open.  Besides, with the way lenders treat people nowadays, you can't exactly leave an account dormant. I recently had a line of credit closed on me because I didn't use it for a year. I had completely forgotten I even had it. 


In the garden since 4/10/17 - Blispay Smiley Happy
Starting scores:
552 EQ, 570 TU, 558 EX Current scores (4/11/17): 737 EQ 692 TU 730 EX

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.