3 Credit Score Myths that Could be Costing You

140925_FF_CCMyths

There’s a lot of misinformation out there. And FICO, the company responsible for the most often used scoring model, only reveals limited information about how the sausage is made—which doesn’t help matters. Plus, since everyone’s credit profile is different, there are often no clear yes or no answers to common questions.

  1. THE MYTH: Closing a credit card you’ve had open for a long time will hurt your score because the formula values a long account history.
  2. THE MYTH: Your credit score will be fine as long as you pay your balance in full every month.
  3. THE MYTH: Applying for too many loans in a short span of time will ding your credit score.