(To enlarge via computer keyboard, hold ctrl key down while rolling mouse wheel forward/away from you)
6 Myths About Credit Scores
When it comes to credit reports and FICO scores, there is a lot of confusion about what actually impacts one's ability to open a credit card, finance a car, or purchase a home.
Your credit score drops if you check your own credit.
Viewing your credit report counts only as a "soft inquiry" and doesn't change the score. "Hard inquiries" by a lender or creditor, though, can slihtly lower your credit score.
You should close old or inactive accounts to help your credit score.
Closing accounts may actually have the reverse effect of lowering your credit score because it can shorten the measured duration of your credit history.
Paying off a negative record means it's taken off your credit report.
Generally, negative records like collections or late payments will remain on your credit report for up to seven years.
Cosigning doesn't mean you're responsible for the account.
If you open a joint account or cosign a loan, you will be held legally responsible for the account, meaning activity on the joint account is displayed on credit reports of both account holders.
Making on-time rental, utility, and cell phone payments helps my credit score.
While outstanding rental, utility, and cell phone debt that have gone to collections can negatively affect your score, generally, on-time payments are not regularly reported to credit bureas.
Your credit score reflects changeds or trends in your payment behavior.
Historically, credit scores have not incorporated trended credit information, they are a moment-in-time glimpse at consumer risk.
(To see this infographic on its original site, click here
Labels: 6 myths about credit scores, real estate infographic
P.S. If you liked this post, you might enjoy our Newsletter. Receive new posts delivered right to your inbox. Sign up here