9 Myths About Credit Scores

9 Myths About Credit Scores

Image title

1.Closing out old, inactive accounts will help your score.


Your credit score is partially based on your length of credit history and your utilization rate. By closing old accounts, you can make your credit history appear shorter and as a result actually decrease your score. It can also reduce the total amount of available credit, which can also affect your score.


2.Opening (but not using) accounts will help your score.


Your credit score is affected by how well you manage the credit you do have over a period of time, not by how many credit cards you have or the available balances.


3.You should avoid using your credit cards at all.


If you're not using your credit, you're not building credit history. Use your credit cards from time to time and promptly pay off the balance.


4.Dispute letters can clean up your bad credit.


Dispute letters may force the removal of negative items temporarily, but once the lender can prove the records accuracy, it will reappear on your credit.


5.Paying off old debts and judgments will help your score.


Don't expect a "negative" to disappear by paying it off. Negative records remain on your credit for 7 - 10 years, regardless of any remedies you've made.


6.Credit inquiries hurt your score.


Inquiries alone do not make a big enough change in your credit score to make a difference when it comes to lenders.


7.Using a credit counseling service lowers your score.


Credit counseling services no longer figure into the FICO scoring system. So although your report might indicate you are receiving credit counseling, using those services won't lower your score.


8.There's a set formula for obtaining good credit.


Credit is a very individual thing. Credit scores look at everything and take it all into account.


9.You can get a perfect score.


Getting a perfect score of 850 is nearly impossible. Your credit score is a reflection of your credit risk and regardless of your credit history, there is always a risk.


Interest rates are currently below 4.25% and you only need a downpayment of 3.5% on FHA or 5% on conventional loans. Also, USDA100% financing is back and you can now get in for zero money down. Income limits and certain restrictions apply.


It's a great time to buy real estate so give me a call and let's start your home search today! Also, if you are thinking about selling, a complimentary analysis of your home’s value and what you can net if you sold your home “now”, contact me today!


Thanks for your time and I look forward to assisting you with your real estate needs.


Deborah Boyd Headshot
Author:
Phone: 940-368-1306
Dated: March 8th 2016
Views: 2,224
About Deborah: My family has lived in North Texas for generations so I personally know the residential areas of Fri...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Is A Spec Home Right For Your Family - Buying a home is a stressful,
Mar 25 2017 35110 1 - It's a Seller's Market! Should I
Mar 24 2017 17359 1 - How Low Supply & High Demand
Plano - Plano  Best City for,

Our Bloggers

Comprar Casa DFW * - 1
Gabrielle Armstrong - 5
Cara Balderas - 39
Tami Bennett - 45
Jessica Boozer - 18
Rhonda Borgne - 1
Olivia Borowski - 1
Jennifer Boyd - 2
Deborah Boyd - 390
Jamie Brannagan - 1
Kathryn Brick - 1
Annette Bruen - 20
Moira Brunken - 18
Beverly Bryant - 23
Ana Cantu - 1
Lisa Cardillo - 52
Bob Cardillo - 4
Lucina Cervantes - 11
Gregory Cornett - 2
Angela Cotten - 71
Missie Craig - 12
Greg Cunningham - 2
Belinda Duff - 5
Leah Ecob - 15
Kristine Edens - 3
Jill Elliott - 99
Laneal Ernest - 9
Nicole Espinosa - 27
Christopher Evans - 1
Heather Feragotti - 8
Mark Fischer - 2
Susan Florsch - 12
Jennifer Flynn - 8
Leslie Fogle - 101
Larry Frassinelli - 6
Chad Gabriel - 58
Shalee Garza - 10
Cassie Gillock - 2
Christina Gonzalez - 5
Wilma Goodwin - 2
William Graves - 5
Kristen Henderson - 1
Beth Herr - 1
Hunter Howard - 1
Sandra Hunt - 89
Bill Hurd - 3
Gary Hutchings - 20
Rachel Jama - 47
Trenton Johnson - 15
Felicia Johnson - 78
Jemi Khan - 26
Leigh Klotz - 5
Amber L Johnson - 8
Michele Lafortune - 22
Wanda Lewis - 2
Noreen Lodhi - 9
Stacy Lynn Massar - 27
Jennifer Menting - 17
Mikki Migis - 8
Richard Mikus - 1
Sean Moniri - 21
Naddia Morales - 10
Keith Moses - 9
Mark Mulch - 19
Erick Murphy - 6
Steve Murray - 1
Julie Nicholson - 10
Nikki Okpuzor - 3
Alan Oliver - 7
Kelly Oltmann - 4
Kaysone Orlando - 1
Holli Paddio - 3
JP Piccinini - 50
Julie Ann Pickering - 85
Ann-Marie Pope - 2
John Priestash - 1
Joshua Putman - 111
Mimi Rader - 1
Shelia Randolph - 33
Teneka Ray - 1
Go 2 Girls Realty - 173
Bethany Rowan - 15
Kristi Roy - 1
Kelly Rumney - 9
Amy Jo Saenz - 3
Linda Scardis - 4
Sandy Setliff - 212
Christine Shannon - 29
Rene Sinclair - 27
Shelby Smith - 3
Bryce Smith - 5
Monica Solkhon - 1
Rodrigo Sotomayor - 16
Jenna Stanley - 9
Kelley Stubbs - 3
Melodie Sulgrove - 1
Seana Taylor - 208
Mary Taylor - 14
Kevin Taylor - 15
Julian Taylor - 17
Erica Taylor - 52
Angela Taylor - 1
Karla Terrell - 2
Joey Thomas - 2
Jason Todd - 24
Andrea Trimble - 55
Miguel Umana - 6
Diane Velez - 17
Debbie Viverito - 132
Nick Walton - 75
Spring Weeks - 9
Michael Worley - 160
Keisha York - 30
Debbie Zurita - 17

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

JP And Associates REALTORS
6175 Main Street #355 Frisco Texas 75034
Frisco, TX
972-375-9448
4692875503

Other Locations