It is easy to find information concerning credit today, TV, Newspapers and internet are loaded with information, but sadly, much of that information is inaccurate. Here are just a few of some common credit myths circulating today:
Credit Myth: “You share a credit score with your spouse.” (Now, you might think that sounds absurd, but I assure you it’s far more widespread than you think.) Your spouse and your credit report and scores are looked at individually. If you have joint accounts, they’ll show up on both your credit reports. If you get an authorized user account for your spouse, that’ll also show up on your report. However, if none of your accounts are joint, and you don’t have any authorized user accounts, there will be nothing that will affect your score for one another.
Credit Myth: “Your credit score only counts when you’re looking to borrow money.” Huge Myth! Your credit score, right now, is looked at for almost everything you do. Increasingly, when you’re applying for a job, they look at your credit score. When you’re applying for auto insurance (in most states), homeowner’s insurance, life insurance, they look at your credit score, they look at your credit history. That’s why it’s so important to clean your credit up. Make sure that your credit’s reporting accurate information. If you have derogatory credit that’s truly yours, you work to rebuild credit.
Credit Myth: “Making multiple payments to a creditor in a singular billing cycle improves your credit.” Could not be further from the truth! The truth is, there is only one payment per billing cycle that is reported to the credit bureaus from creditors. Multiple payments or trying to split up payments so that it “looks like” there is more payment activity on an account can actually hurt the consumer, how…….a lot of times if a payment is due on the 10th of the month and a partial payment is received on the 1st of the month and then a 2nd payment is received on the 15th of the month, if the payment made on the 1st was equal to at least the minimum payment due there will be a late charge which will be charged to the account no matter how large a payment is made on the 15th. Best advice, make your payments once a month on Credit Cards, Installment Accounts and Mortgages and pay them at the same time each month so you develop a habit of paying on time.