10 Common Credit Score Myths

Think you know all you need to about credit scores? Most of us don’t understand or know what makes up our credit score. This article contains five myths you should know about the credit scoring process.

The FICO credit scoring model is misunderstood by many consumers. There are some popular misconceptions about what actions can boost or damage your score, what’s factored into your score, and how your credit score affects your ability to buy a home or car.

With that in mind, here are 10 of the most common credit score myths, and the reality behind each one.

1. It’s impossible to get a credit card if you don’t have any credit

(C) Pinterest

(C) Pinterest

In order for you to have a FICO credit score at all, your credit report must have at least one account opened for six months or more and at least one account that has been reported to a credit bureau within the past six months. If you don’t meet both of these requirements, then you don’t have a FICO score, and it can certainly be difficult to obtain credit.

However, it’s not impossible. You can apply for a credit card or loan with a cosigner, become an authorized user on someone else’s account, or get a secured credit card on your own. Any of these methods can help you start building a credit score.

 

Read more: https://www.fool.com/credit-cards/2017/09/19/10-common-credit-score-myths.aspx

 

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