5 Credit Myths You Need to Know Aren’t True
MYTH 1: You only have one credit score.
This is without a doubt the most common credit myth. There is no one true credit score. Credit industries use an array of models and factors to generate consumer credit scores, but there are 3 credit scores each are modeled from one of the 3 credit bureaus Experian, Transunion, & Equifax.
MYTH 2: Checking your credit report will hurt your credit score.
Checking your own credit score will never negatively affect your credit score. As a consumer you are entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting agencies.
MYTH 3: Bankruptcy will wipe your credit history clean.
While bankruptcy may help erase certain past debts those accounts will not disappear from your credit report and can remain on your credit report for 10 years. Federal student loans cannot be discharged in bankruptcy therefore they will remain on your credit report.
MYTH 4: Employers do not check credit when hiring & having bad credit wont cost you a job.
This couldn’t be further from the truth. In today’s competitive job market employers want to know who they are hiring and are checking potential candidates’ credit reports more than ever.
So yes having bad credit can cost you that new job.
Myth 5: You do not need good credit when looking for a new place to live if you’re just looking to rent not own.
Again this is completely wrong in today’s world landlords want to know who they are renting to and your ability to pay rent on time & the best way to determine that is by checking your credit.
So these are the top 5 credit myths & knowing them along with your credit score is the first step to getting your credit on track.
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