Are These Credit Myths Destroying Your Credit?
There’s a lot of information out there about improving your credit, especially nowadays, with social media, blogs, and other websites.
In this day and age, everyone who can hit publish can pose themselves as an expert to help you improve your credit or raise your credit score in a matter of days.
Unfortunately, as a consumer, you’ll have to weed through the bad information to sort out what actually works to help improve your credit score. When you think about buying your first home, a credit score is a very important part of buying your first home.
In this post, we’ll cover a few common myths that could be destroying your credit score and hindering your ability to buy your first home.
Myth #1: Closing Old Accounts Will Improve Your Score
Have you heard that you should close those old accounts? If so, this is a common myth about improving your credit score.
Closing old accounts can actually hurt your credit score. Part of your credit score is determined by the length of established credit by taking the average age of each account. So, when you close your oldest account, that will hurt the age of your established credit history.
There are certain accounts (like a car loan) that you can’t avoid paying off and closing the account. But for things like an old credit card, avoid closing those accounts if possible.
Myth #2: There Are Agency That Can Help Improve Your Credit
There are agencies out there that will try to scam you into believing that they can magically improve your credit. Unfortunately, most of these agencies are just a scam.
When it comes to improving your credit score, there is no magic fix that’ll improve it overnight. Improving your credit score will take a bit of work and a bit of time.
Here are a few easy ways to help improve your score over time:
- Pay down debt.
- Avoid opening new accounts.
- Avoid opening new lines of credit.
- Pay your bills on time.
- Keep your old accounts open.
With a little bit of time and effort, you can improve your score. These tips can also help mainstain a good credit score.
Myth #3: Lots Of Credit Cards Will Improve Your Score
Credit cards can be a blessing and a curse for your credit. Having too many cards can hurt your score, but having a card or two can help maintain a good credit score.
It can be a delicate balance when establishing credit or improving your score. It’s important to have a card or two to help maintain your score, but opening too many cards can hurt your score by having too many credit inquiries in a short period of time.
It can be best to focus only on having a few cards and avoid opening up to many lines of credit.
Bottom Line: Ask An Expert For Advice
Buying your first home will require a decent credit score, so it’s important that you get information from someone who knows what they’re talking about.
If you have questions or concerns about your credit and your ability to buy a home, be sure to talk with a loan officer. They can let you know what score you’ll need to buy a home.
Are you thinking about buying a home this year? Please let Knoxville Home Team know if there is any way that we can assist you in your Knoxville home search. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at Kati@KnoxvilleHomeTeam.Com.
Also, be sure to check out our Knoxville Home Search Page to see what homes are for sale in the area.