Are You Smarter than Your Credit Score?

Are you smarter than your credit score?  Your credit report & score can positively or negatively impact your financial future.  In fact, your credit can play a key role in your ability to obtain housing, employment, insurance and future credit.   With something as important as your credit, you can’t afford to be playing the guessing game. You need to be “in the know” or it could wind up costing you…literally!
I invite you to put on your “thinking cap” and test your credit knowledge.  Below you will find common statements regarding credit and you need to determine if it’s Fact or Fiction.  Ready…Set…GO!

• Credit scores have minimal impact on the interest rate I’m charged for a loan?
• All credit reports contain the same information?
• A divorce decree automatically severs joint accounts?
• Closing accounts always helps your credit score?
• If I pay my bills on time, I don’t need to check my credit report?
• Checking your credit report & score can hurt your credit?
• Anyone can pull my credit report?
• I have to pay to check my credit report?

If you answered “NO” to all of the above….you are correct! (winner, winner-chicken dinner).  All of the above statements are FICTION!  If you didn’t get them all right, now’s the time to get the FACTS.

• Your credit score plays a significant role in determining the rate in which you are charged for a loan. The higher you credit score, the better your credit terms.
• Not all creditors report to all 3 Credit Reporting Agencies, therefore your three reports may not contain all the same information.
• The original contract is still valid and in effect. Couples need to discuss this with their attorneys and contact creditors to determine what the credit guidelines are.  Until it has been resolved, both parties are legally responsible for the joint account even if the divorce decree indicates something different.
• Depending on your overall credit history, closing an account may or may not lower your credit score.
• Everyone needs to check their credit report for accuracy, fraud and Identity Theft.
• Checking your credit report will not lower your score because it’s considered a consumer inquiry. Consumer inquiries are “soft pulls” which have no impact on your score.
• Only those who have a permissible purpose can pull your credit report.
• The FACT ACT (The Fair and Accurate Credit Transactions Act of 2003) allows consumer to request and obtain a free credit report once every twelve months from each of the three nationwide consumer credit report companies (Experian, Trans Union & Equifax). Visit annualcreditreport.com to get yours!

Are you interested in learning more about how your current financial situation is impacting your financial future?  Apprisen is here to help.  Contact us by phone, on-line or in person to schedule your confidential Credit Health Education session today!