Myths About Credit Score

Last Revised on February 11, 2008

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Many people are misinformed about what does and doesn’t hurt your credit score, and much of it is coming from sources who should know better: mortgage lenders.

Closing accounts can help your credit score: That’s not true. Closing accounts can never help your credit score, and may hurt it. The credit score looks at the difference between your available credit and what you’re using. Closing your accounts will result in credit shrinks, making your balances accumulate larger, which typically hurts your score.

Your FICO isn’t the only score you need to check: That’s not true; it’s a myth. All the top three credit score bureaus offer FICO credit scores using the formula developed by Fair, Isaac, but they each give the scores a different name. At Equifax, the FICO is known as the Beacon credit score. At TransUnion, it’s called Empirica. At Experian, it goes by the unwieldy title of Experian/Fair, Isaac Risk Model.

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One Response to “Myths About Credit Score”

  1. mickey Says:
    March 4th, 2011 at 7:56 pm

    if you apply for a credit card and after you recieve it and decide you dont want itand you
    dont activate it and call the bank and tell them you changed your mind, could that hurt you in any
    way

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