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Six credit score myths debunked

Moderator

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."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
2 REPLIES
Regular Contributor

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.
Valued Contributor

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. 



Starting scores: 552 EQ, 570 TU, 558 EX Current scores (9/29/17): 746 EQ 721 TU 719 EX