Last week, we revealed the top two myths that are associated with building your credit and improving your score. Now, we’ve debunked two additional myths, as they can do more harm than good when trying to rebuild and maintain good credit.
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.
A credit score of 720 or more is considered prime—this means you’re in good shape. Scores under 550 mean you could be turned down for a loan. Scores in the good-not-great range (550 to 720) might get you loan approval, but your interest rates will be higher than if you had a prime credit score. Nobody likes the idea of paying more money for no reason, so it makes sense to adopt credit habits that will boost your overall score.
Have you ever wondered: why is my credit score so important? Then you’re in luck, because we have the answer, or in this case, answers, to your question. Your credit score is a three-digit number than can affect everything from your ability to get a loan to your career growth. Here’s what you need to know about your credit score.