3 Credit Myths You Should Never Fall For

With so much information all over the internet about credit, it can be hard to decipher what is true and what is not. Once you have your head fully wrapped around all facts surrounding your credit, it will become easier to be able to accurately monitor your score and actively work to get it as high as possible. Here are three myths that we are debunking surrounding credit:

1. The more often you check your credit report, the likelier it is that it will hurt your score. This is false! No matter how many times you check your credit report, your score will not lower because of this. It is actually great to check your report often to keep tabs on it and ensure that you are catching any fraudulent activity that may be happening.
2. All credit bureaus collect the same information, and have the same algorithim. This is false! The main credit bureaus, including Equifax, Experian and TransUnion, all report on different information. While your score may be quite similar between the three different bureaus, they each have their own system and algorithim for determining your score. As long as you know that there are no errors on any of the bureaus, you can be confident that you’re in good financial standing.
3. How much money you have saved in the bank greatly affects your score. This is false! When it comes to credit scoring, it is mainly determined on your repayment history – so how much money you make and how much you have saved does not greatly impact the credit reports.