We’re talking about the myths of building credit that are worth avoiding. Dive in with us and break some long-standing credit-building myths.
What are the top credit building myths?
Does checking your credit score reduce it?
Closing lines of Credit
That doesn’t mean you should open up a myriad of credit lines. On the contrary, having multiple accounts open does not improve your credit score itself. Having too many accounts open means there is a lot of available credit open via multiple lines; this can be a concern to credit lenders. Credit lenders will begin to wonder why all of that credit is necessary. It can also lead to too many hard inquiries, which can decrease your credit score on its own.
Carrying a Balance is Good for Credit
There are many more myths about spending, building and loosing credit. The reality is that if you are taking steps to create consistency in your credit activity, your credit score is likely to improve. While these are just three of the biggest credit myths out there, there’s plenty more to be wary of. It helps to stay aware and active on your credit score, credit history and credit balances.
This is perhaps one of the most detrimental credit myths. Popular belief is that having a balance on your credit account can improve your credit score. Another popular line of thinking is that paying the minimum amount can help your credit. The idea is that it will indicate an ability to gradually pay off credit.