Looking to improve your credit score?
Then you may be tempted to settle some debts, close a credit card or two, and earn a bit more money. Unfortunately, all of those are myths, when it comes to that mysterious credit score.
We all want as high a number as possible at Equifax, Experien and Transunion. But how do you get a 550 or 675 credit score closer to a perfect 800?
Bankrate.com says many people believe in the wrong fixes.
Bankrate's top credit score myths include:
- Paying off your debts will raise it. No, you want some revolving credit.
- Credit counseling destroys your score. No it doesn't, unless you settle credit card bills for pennies on the dollar.
- Checking your annual credit report hurts your score. No, checking it is actually a good thing.
- And divorce releases you from your spouses bad credit history. Sorry, that takes years.
Doesn't That Stink?
And from the "doesn't that stink" file, perhaps the biggest credit score myth of all :
- Missing a credit card, mortgage or car loan payment won't hurt it too much. Not true. Actually, it will hurt your score, as much as 50 points or more. Doesn't that stink?
Simplest way to a good score? Never miss an installment payment.
Finally, Bankrate reminds you that there are no quick fixes to a low credit score. It takes time and diligence to rebuild your score if it takes a hit.
And that way you don't waste your money. .
Don't Waste Your Money is a registered trademark of the
EW Scripps Co.
John Matarese on Facebook