4 Credit Myths Everyone Should Know

By Mike Wayman

Given the economic uncertainties that we live in today, it is not uncommon that you might consider applying for a loan or needing to make a purchase off of credit. What is the best way to go about getting the right financing for your needs? It probably depends on your situation. And while you have probably heard on the news the reports about banks tightening their standards, you still have options to get the money you need. However, you need to be aware of common myths and mistakes people usually make when it comes to dealing with credit. Here are 4 good myths to keep in mind.

1. Credit Score = Credit Report. There is a difference between your credit score and your credit report. The credit score is a number, while the report lists a detailed history of your finances. This “report” includes payment history, balances you might owe, anything past due, etc.
2. Don’t check your credit report if you’ve paid your bills. Today many people have become victim to identity theft. If you do not check, you will never know if you are one of them.
3. Checking your credit report damages your credit. This will not damage your credit. Check it today!
4. Boost your credit by paying off bills fast. Your credit score reflects payment over time. Your score will not change overnight.