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Credit Education > Credit Score > Common Credit Score Myths Debunked

Common Credit Score Myths Debunked

By Janet Lacey
Published: Monday, November 9th, 2009

The credit score is an important number in a person’s financial life. However, this number is surrounded by a number if ambiguities and confusion. A number of wrong facts associated with the credit score can impair your credit repair process. Some of the main credit score myths and the truth regarding them are given here to help you in improving your credit score. 

Myth: One person has just one credit score.

Truth: Your credit score is calculated by the three main credit bureaus– Experian, Equifax, and TransUnion. Since different information may be available to different agencies in most cases, your credit score will vary from bureaus to bureau. As a result, one person generally has three different credit scores, and in some cases, they may vary sigficantly from one report to the other. 

Myth: Different credit bureaus calculate your score differently.

Truth: As of now, all three credit bureaus use the FICO method for calculating your credit score. This means that your credit score is calculated using the same algorithm by all bureaus. The difference in your score arises only because all credit bureaus may not be privy to exactly the same information. 

Myth: You will damage your credit score by regularly ordering your credit report.

Truth: Apart from the fact that you are entitled to three free credit reports an year, the number of times that you get a paid copy of your credit report also has no effect on your credit score whatsoever. In fact, getting and checking your credit score regularly is a good practice that helps in credit monitoring and repair. 

Myth: You really cannot do much to improve your credit score.

Truth: Of course you can. Credit repair is a not an overnight job that can be carried out, but you can significantly increase your credit score by following good credit practices like paying your bills on time, keeping credit utilization to a minimum and not applying for too much credit. 

Myth: Your spouse’s bad credit score is pulling yours down!

Truth: Much as you would like to believe this, it is absolutely not true! Your credit score is independent of your partner or spouse’s credit score, apart from the joint accounts that will show up in both you and your partner’s reports. 

Myth: There are a number of organizations that will remove all negative entries for money.

Truth: While there are a number of credit repair companies that can help you in removing erroneously reported negative items from your credit report, there is no existing organization that can get actual negative items removed from your credit report. 

Myth: You should contact a credit repair firm to get your credit score corrected.

Truth: In case your credit score is negatively affected by erroneous information, then you yourself can and should get it corrected by directly writing to the credit bureau reporting the wrong information. A credit repair agency will also do the same, but they will charge you for something that you can easily do yourself for free.

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