3 Myths We Still Believe About Credit Scores

Credit scores are only one thing we're not able to seem to get right. In fact, a recently available survey found out that many of us are still unclear about them. This confusion could have a significant affect our financial future. A good credit score can help you save a lot of money ultimately, but an undesirable score can cost you a pretty penny. We can't bust all the myths immediately, but you can get a some of the most-often cited ones aside to start.



1: You have only one credit score. This myth is among the most difficult to bust. The reality is which you have dozens -- possibly hundreds -- of fico scores. In the popular FICO model alone, you will discover 49 different scores. And the score you pay for usually is not the one that your lender sees. Credit scores will vary based on which inquiry has made (auto lender vs.



The great news is that your various people's credit reports are highly correlated, according to a current report released through the Consumer Financial Protection Bureau (CFPB). That means should your credit is rated "good" a single model, it must be "good" to all models. 2: Checking your personal credit hurts your score.

This is named a soft inquiry, plus it won't affect your credit in any respect. A soft inquiry just sits there for making lending decisions -- that kind is named a hard inquiry. Checking your credit history and reports regularly is really a good thing. It will give you an idea of predicament and how your actions are in your credit rating. Plus, you should check your credit file for inaccuracy and errors. So avoid getting afraid to evaluate up on your credit health often -- it's not going to hurt your score one bit.