Debunking Some Credit Score Myths

Debunking Some Credit Score Myths

In business for more than five decades, Reliable Credit offers loans for a wide variety of needs. The company maintains branches in Idaho, Washington, and Oregon, and prospective clients in need of loans will appreciate Reliable Credit's policy of evaluating each client's creditworthiness on an individual basis.

Debunking Some Credit Score Myths

A haze of myths surrounds credit scores, making it hard for people to understand ways to improve them. For example, many people believe that applying for a new credit card only impacts their score if they use the card. The fact is that simply applying for a card affects their score, and applying for new cards frequently has an even bigger impact. Individuals should pick and choose when to apply carefully.

Debunking Some Credit Score Myths

Another popular myth is that each individual has a single, universal credit score. Actually, there are three major credit bureaus: Equifax, Experian, and TransUnion. Each bureau tracks FICO credit scores, so each individual has three different scores and credit reports..

Debunking Some Credit Score Myths

Another area of confusion concerns the difference between credit scores and credit reports. A credit report lists an individual's credit history, comprised of open and closed accounts, credit limits, amounts owed, and payment history. From the credit report, FICO generates a score that takes into account all of the information from the credit report.