Most people have heard the standard tips to improve your credit score: pay your bills on time, maintain a low credit balance, and reduce. But, do all of these really work? You don’t know what really affects your score, unless you check your credit report. Check out this post by Kristina at Cents and Order for some surprising facts that may change how you look at your credit score. Some of them even surprised me! Here are the biggest myths about credit that most people (including myself) believe:
– “Paying household/utility bills on time gives you good credit.” False. But, if you pay them late, it WILL negatively affect your score.
– “Your credit score is the same across the board.” False. Your score will most likely be different from each agency.
– “Paying bills a few days late will hurt you.” False. Late payments will not show up on your score until they are 30+ days late.
Wow! I totally believed the last one. That’s really a relief, even though I always pay my bills on time 😉 it’s nice to know that there is a bit of wiggle room, though.