Here at Ovation, we feel that knowledgeable consumers are empowered consumers, which is why we spend so much of our time and effort providing education about credit laws, credit cards, and credit repair. We want you to be informed, perceptive credit users who use credit as a tool instead of being a slave to credit.
Part of being a savvy credit consumer is being able to move beyond the myths that surround credit. Your credit score is more than just a number; it is your ticket to better interest rates, strong purchasing power, and sometimes a better job. Today, we’re busting a few credit myths and bringing you the truth.
I can boost my score by cancelling credit cards.
While it might seem logical that closing accounts would boost your credit, the opposite is actually true – especially if you close accounts you have had for a long time. Credit history carries a lot of weight – 35% of your credit score – so closing older accounts can actually be very bad for your overall credit score.
I can’t apply for credit because too many inquiries are bad for my score.
While it can be detrimental if you’re always applying for new credit cards and opening new accounts every month, credit-reporting agencies recognize when a consumer is simply shopping. If multiple mortgage or auto credit inquiries come in during the same 30-day period, the credit agencies will assume you’re on the hunt for the best deal and it won’t count against you.
I pay my bills on time every month, so I don’t need to check my credit reports.
Every single person absolutely must take responsibility for actively managing their credit and reviewing the information on their credit reports. Even if you are paying all of your bills on time every month, you should be making certain that no one else is using your good credit and that your efforts are being properly reported. You can request a free copy of your credit report from each of the three reporting agencies once per year.
As long as credit myths keep popping up, you can count on us here at Ovation to keep peeling away the layers of confusion so that you can be an empowered, informed consumer in charge of your own financial destiny. If you have questions or concerns about your credit, feel free to contact us today for a free consultation.