Credit Score Myths Debunked

Credit Score Myths Debunked

Okay, so, I was once again reading an article, this time in Yahoo Finance.  It had some really great news on credit scores and since this is a major factor in a home purchase, I decided to link you all to it.

One of the points the article made was that CARRYING A BALANCE on your credit cards brings your credit score up.  Personally, I never heard that and always understood that you use it and pay it off, which this article leans towards.  The point made here is that you will simply be paying interest on a carried balance that the credit bureaus don't even know about.

A point that was made was something new to me.  CUT UP CREDIT CARDS YOU DON'T USE.  I'm sure you've all heard that, but probably never knew that there was something called "credit utilization ratio" that affects your score.  You should use your cards, even if only once or twice per year so this portion of your credit score will stay up.

PAYING CASH will increase your credit score.  The problem with this idea is that the credit bureaus do not see anything you pay for with cash or your ATM card.  It has recently been suggested by SUSIE ORMAN that you get a prepaid credit card thereby allowing your bill payments and purchases for just about everything to increase your credit score.  You can even direct deposit your paycheck onto this card and include things like groceries and gas.

For more information, you should read the article HERE.

Warmest Regards,
Linda K. Mayer,
Realtor, Office Manager  
License # 01767321
A Realtor you can Trust!
(626) 824-8927 Cell
(909) 670-2711 Direct
LindaKMayer@live.com
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