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Credit Card Myths That Just Will Not Die

credit counselingIn a culture that relies on spending, it is easy to build up credit card debt and not realize what is happening until too late. When this happens, it may be necessary to invest in credit card debt management and credit counseling in order to get your finances back on track. However, in order to prevent your credit score from going down the drain too fast, here are some credit myths you should not believe.

Myth: Closing a credit card will dramatically improve a credit score
Fact: The typical American consumer has an average of 3.5 credit cards. But if you believe that closing some unnecessary cards is the quick answer to improving your credit score, think again. Doing so can actually have a negative impact on your credit score as it will lower the ratio of debt to your available credit. This is known as your credit utilization rate, and is a major factor among many credit scoring models. While closing your credit cards is a recommended debt consolidation management technique, make sure you are doing it properly with the help of proper credit counseling.

Myth: Checking my credit will lower my credit score
Fact: Untrue! Because this is simply a soft inquiry, it will not lower your credit. In fact, you should check your credit score as often as possible so you can know where you stand!

Myth: My income affects my credit scores
Fact: While your income will affect the amount you are able to pay back to your debt settlement, it will not have any negative impact on your credit score. Your current and past employers will appear on your credit reports, but your current income will not.

Myth: Bad credit never goes away
Fact: Absolutely untrue! If you follow proper credit counseling practices, such as paying off delinquent accounts and using your credit responsibly, your credit score will slowly but surely raise with time. In general, your credit score is a live snapshot of your current financial status, so fluctuation is completely normal.

Myth: My personal bank account has a negative impact on my score
Fact: No matter what, your personal bank account will not have any impact on your credit score as they are not related in any way. You will want to make sure to close any accounts that are inactive, as fees that can incur will show up as a delinquent payment on your credit score.

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We're not around right now. But you can send us an email and we'll get back to you, asap.

Questions, issues or concerns? I'd love to help you!

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