What are some common myths about credit scores?

What are some common myths about credit scores?

Many people believe that checking your own credit score lowers it, but that's a myth! It actually doesn't affect your score.

Is it true that closing old credit accounts improves your score?

No, that's another myth! Closing old accounts can actually hurt your score because it reduces your credit history length.

Do I need a credit card to build a good credit score?

Not necessarily! While credit cards can help, you can also build credit through loans and other forms of credit.

What about paying off collections? Does that help my score?

Paying off collections can improve your credit report, but it may not significantly boost your score immediately.

Are there any other myths I should be aware of?

Yes, many people think that income affects credit scores, but it actually doesn't. Your credit score is based on credit behavior.