There are many credit score myths floating around. This is due to the fact that few people know how credit scores are calculated and what helps determine a credit score. Here are a few credit score myths:

* Credit card offers will lower your credit score. Receiving credit card offers does not lower your score. If you choose to open multiple lines of credit, however, you leave yourself at risk to spend more, and this can lower your score. The higher the balances on your cards, the lower your credit score, and if you do not repay the minimum every month, you will significantly hurt your credit history.

* Checking your score hurts your credit. This is a tricky one. Many people think that checking your credit report can lower your credit score. This is not necessarily the case. You can check your credit score as many times as you wish without lowering your score, as long as you do so through legitimate credit reporting agencies. However, hard hits, such as applying for new lines of credit, will lower your score.

* Comparing mortgage or car loans can lower your score. For the same reasons as above, many think that shopping around for the best mortgage or car loan rates can lower your score. In fact, inquiries for a mortgage or car loan are treated as a single inquiry as long as they occur within 45 days of each other, so feel free to look for the best deal.

* Paying off all my debt will raise my score significantly. While this may seem like a logical conclusion, your credit score is not based solely on how much debt you have. Your credit score is also determined by your credit history. If you constantly made late payments or missed payments altogether, your credit score will remain low, as this tells companies that you may not be able to pay in the future.

* Credit counseling will hurt your credit score. The FICO model does not take into account any references to credit counseling. This changed 3 years ago, after research showed that those who underwent credit counseling did not default on their debts more than anyone else. However, some companies see the reference to credit counseling and will not offer you credit, while others may offer you a higher interest rate.

Overall, be careful about what you believe when it comes to your credit. By obtaining credit counseling or speaking to a professor, you can help learn fact from fiction and choose the best course of action to build good credit.


Tom Ambrozewicz, mortgage and real estate broker since 1993, is one of the pioneers in using breakthrough audio technology on his web sites. You can read or listen to professional narrator reading to you. Check spectrum of credit tips at