Myths About Credit Score

Last Revised on February 11, 2008

Love Your Health Money Family & Relationship

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.

As always, please feel free to leave suggestions, ask any questions for help or simply discuss the topic. We highly appreciate your involvement and input everyday. If find it helpful, please share it with your friends by using one of the buttons below.

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

Any Comments, Solutions, Questions, Reviews or Feedbacks You Have

You must be logged in to post a comment.