Blog

Credit Score Myths Busted

Posted November 16, 2019 in Real Estate Trends

Michael Pattullo2018, Clark County WA real estate agent

When it comes to helping your credit score, there are a lot of myths about helping a score that actually hurts. Here’s a list of a few myths that you should consider understanding better:

[Note: These myths are for people with existing credit scores. If you are trying to create a credit score, please email or phone me]

  • Opening a new retail credit card is good for my score.

NO, opening a new account can be bad, because it changes the age of your credit. New credit can subtract points from your score.

  • Carrying a balance on a credit card account is good for my score.

WRONG, the amount of open credit on your credit card is what helps your score.

  • Closing an old credit card will help my score.

NO, even if you find a better rate on a credit card, it is better to maintain the open credit on the old card. Closing an old account can actually hurt your score.

  • If I only use one credit card and pay on time, that is all that matters on my credit.

WRONG, if you use one credit card beyond 30% of its available credit, then you might be utilizing credit in a way that hurts your score. It’s better to ask for an increase in a credit line or use another credit card. Of course, it is important to make your payments on time.

  • Checking my credit score hurts my credit.

FALSE. Many people get confused between hard inquiries which are made when an application is submitted for credit versus checking one’s credit through a service such as Credit Karma. Many credit card companies offer scores as a service. Most people who look and understand their scores see an increase in their score over time.

People need to know all they can about how to keep a healthy credit score. There are many misconceptions about what is good versus bad.  Please call or email for more assistance on how to improve your credit score. I’m at MPattullo@PeakMtg.com

We lend where we live,

Mike