Credit scores are an area of personal finance that seem a lot more mysterious than they actually are. Many people believe that improving their score is a matter of trial and error and, as a result, there’s a lot of “credit score advice” floating around that can end up doing more harm than good. There are four common credit score myths and we’ve debunked two of them for you.
Myth #1: You have no control over your credit score
There many factors that make this myth easy to buy into—credit bureaus keep their exact credit score formulas a secret, you can’t access your credit report whenever you’d like and it’s possible to be financially stable and still have a miserable score. These are all false. It’s OK to find credit scores confusing, but if you have an accompanying “there’s nothing I can do about it” mentality, it’s time to let it go!
Your credit score is a reflection of your borrowing and repayment behaviors, and that means you have a lot more control over it than you think.
Myth #2: There’s a “quick fix” for your credit score
Although junk mail and late night commercials may try to convince you otherwise, boosting your credit score doesn’t happen overnight. The good news is that there are things you can do to positively influence your score that are simple and don’t require much time or effort, but the trade-off is that you’ll have to be patient while waiting for your new good credit habits to take effect.
Your credit score is more of a track record than a snapshot, so consistency is key.
There are two additional common credit score myths. Can you guess what they are?
Stay tuned to our blog as we’ll reveal them next week!