Common Credit Report Myths

It's unbelievable how many myths about credit reports and scores go around between consumers. If you're ever unsure of something you hear it's always the best idea to refer to a bank, credit bureau, or finance specialist. Here are a few of the common myths:

• Checking your own credit hurts your score. Credit bureaus can distinguish the difference between personal credit pulls and merchant pulls. When you request your score it's considered a "soft" pull and doesn't reflect negatively on your score.
• Higher earnings means higher credit score. On a recent survey 50% of the consumers voted that your earnings affects your credit report and score. This is absolutely not true. Your credit score and report only represent your ability to pay bills, not earn money.
• Credit reports and scores are locked in for 6 months. Your credit score is constantly being recalculated. Each and every time your file is pulled from a credit bureau the score and report are updated. Each month, your creditors and merchants report your activity to the bureaus.