Myths and Facts about Credit Report
What you believe to be true may not necessarily be true at all. Compare your beliefs about your credit status with these myths and facts below:
MYTH: Never missing a payment will get you the best interest rates.
FACT: A long history of timely payments, proven responsibility in handling multiple types of loans, stable income levels and other risk factors will determine whether you get the best interest rates.
MYTH: Paying the utility bills will improve your credit score.
FACT: No it won’t – at the moment, anyway. Future reformulation of FICO scores may change that, but not paying your bills on time will definitely lower your credit score and show up on your report.
MYTH: Banks don’t reduce their lines of credit.
FACT: They can do just that. A lack of credit to extend, a risky economy or signs that you can’t pay back your debts are just some factors that will prompt banks to cut their lines of credit.
MYTH: Co-signing will automatically improve your credit score.
FACT: No, it will not. Your credit score will improve if the co-signee makes payments on time, but you put your own score and your relationship with the co-signee at risk if he or she fails to make those payments.