3 Credit Score Myths That Need to Go

While experts have gone on to debunk a number of myths ranging from food to the faking of the moon landing, a much-misunderstood topic such as credit scores remains to be dealt with.

That said, here are 3 credit score myths that need to go:

#1: Never close a credit card account

A lot of people know that closing an account can actually hurt their credit scores and this reaches a point where they don’t want to close any account at all. Be careful not to close your account if you plan to apply for a loan soon or have very few credit lines open. On the other hand, if you have a number of accounts open, closing one won’t matter.

#3: You can get your credit score for free

Even if you can get a clear look at your credit score once every year, there is no federal law that will guarantee you a look at your score. In most cases, the free look that you get will not be a FICO – the kind of score that is used most by lenders. Instead, spend $20 and get a look at your accurate scores at MyFICO.com. Or else, expect only a general look at your scores at best.

#4: A good score requires one to be in debt

This is hardly true. You don’t even need a credit card balance so as to get a score. All one has to do is pay off their balances in full every month and you’ll end up with a good score. If you want to fix a bad credit score, then paying off a loan as well as credit cards can help you do so.