9 Year Mortgage: Credit Score Myths Corrected
The “credit score” is nothing new; however there are still many misconceptions and myths surrounding them. 9 Year Mortgage wants to help set these myths straight.
Myth #1: You needn’t be concerned about your scores. This myth is based off of the idea that if you are responsible with your finances, you will have a good credit score.
The Truth: Credit scores don’t measure anything but your actual credit usage. Even if you pay all of your bills on time and save money, etc. your score will likely suffer if you do not use any credit. You may not be able to get a loan at all without credit. Even if you don’t plan to ever borrow money, your credit score can be used to determine insurance premiums, down payments required for utilities and rental homes/apartments. Because of this, 9 Year Mortgage knows that it is important to be aware of your credit scores.
Myth #2: You shouldn’t ever close a credit account. 9 Year Mortgage knows that people worry about closing accounts and how that may negatively affect their credit.
The Truth: If you only have a few credit lines open, it is not a great idea to close one of the few accounts you have open. However, if you have many credit accounts open, closing one will be very unlikely to harm your score at all.
Myth #3: Having too many cards is bad for your credit.
The Truth: In fact, lenders prefer to see more available lines of credit open, because it is a mark of credit trustworthiness. As long as your accounts aren’t all almost maxed out, it is a good thing to have more credit cards.
Myth #4: You need to be in debt to have good scores.
The Truth: 9 Year Mortgage advises that carrying a balance on your credit cards is not necessary. As long as you have and use a couple of credit cards, you will get good scores, even if you pay it off in full every month. (This saves you on interest as well!)
Myth #5: It is bad for your scores to pay off debt.
The Truth: Paying down your debt is actually very good for your scores, because it increases the gap between your credit limit and the amount charged to it. 9 Year Mortgage also thinks it is worth knowing that paying off credit card debt is more effective to raising your credit score than paying off loans faster.
Myth #6: Closed accounts won’t show on a credit report.
The Truth: Negative marks on your credit, even those from closed accounts, can remain on your report for up to seven years. The good news is that neutral or positive accounts can be reported forever.
Myth #7: Checking your credit hurts your credit.
The Truth: 9 Year Mortgage knows that this is one of the more stubborn myths about credit scores. In fact, checking your score from any legitimate site will not affect your scores. The federally mandated site for checking your score each year is www.annualcreditreport.com.
Will The 9 Year Mortgage Plan Work For Me?
To learn more about 9 Year Mortgage, and to find out if you qualify for the 9 Year Mortgage program. Find out how soon you could be completely debt free, including your mortgage, with the 9 Year Mortgage Financial Plan. Find out what thousands of satisfied clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game! 9 Year Mortgage representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest! For more great money-saving ideas visit 9 Year Mortgage on YouTube or go directly to the 9 Year Mortgage Money Saving Minute. 9 Year Mortgage recently launched their Eliminating Debt with 9 Year Mortgage site , which is also full of valuable, free information.
Comments on 9 Year Mortgage: Credit Score Myths Corrected
roger @ 1:47 am
As a note, requesting your credit report from annualcreditreport.com won’t hurt your credit score, but having (for instance) a loan officer request your FICO score from a credit report company can, but I think it’s pretty slight and not worth worrying about too much (and only dings it for 6 months or what not). Cheers!