My Free Credit Score: Credit Scoring Myths

My Free Credit Score: Credit Scoring Myths

I am still reading the book “Your Credit Score” by Liz Pullman Weston. I am up to page 70 now. I do enjoy the book and I’ll update you along the way. I just read a chapter about credit scoring myths, and I have read the same thing in other books, so you’ll see it in other places, but here are some credit myths. Myth #1 Closing accounts will help your score, no it doesn’t it can hurt your score in most cases. It takes away your available credit (spread) from balance to available. Also it could take away one of your older accounts with history. Myth #2 you can boost your score by having your limits lowered, no once again this lowers your debt to available credit ratio. Myth #3 You’ll hurt your score by checking your own credit. No not if you do it yourself from the credit bureau direct. If you hire someone else to have the lender do it, then yes, that’s a “hard pull” and that will lower it some. Skipping to Myth #7 Adding a 100 word statement on your account helps. No, I have heard this many times, but I wouldn’t count on it helping. Myth #10 bankruptcy hurts your score so much that you’ll never get credit. This is not true, I know for a fact over recent years some lenders have allowed buyers to get loans with only 6months to 24 months out of bankruptcy. Why is this? Think about it, if you can only claim bankruptcy every 7 years, then after only 1 day the buyer has a clean slate, how safe is that for a lender, for awhile. You can always do a bad credit home loan purchase with something similar to a subprime lender.

To see the rest, please read the book, there are other books I can recommend out there. If you have any questions about real estate at any time, or improving your credit score, etc. please email me at ron@minnesotainvestors.com

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My Free Credit Score: Credit Scoring Myths

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