ORLANDO, Fla. – Improving your credit score has been undermined by myths that fail to live up to the promise of higher numbers.
Ted Rossman, a senior industry analyst with Bankrate.com, told News 6 the worst myth consumers can follow is to carry a credit card balance to boost your overall score.
“There’s unfortunately this big misconception that if you carry a balance, it’s somehow better for your score. It’s not true,” Rossman said, “The only thing that’s going to do is cost you money in interest.”
According to Equifax, in most cases credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
[TRENDING: Become a News 6 Insider]
Rossman said the scores in the good to excellent range can be attained by paying your credit card debt in full every month.
Rossman suggests consumers avoid a high monthly credit card statement that is close to your maximum credit line by paying part of the bill with a mid-month payment.
“The point is if you have a $5,000 limit and your statement balance shows $4,000, that looks risky to lenders,” he said.
Rossman said another big myth mistake is the notion that when you check your credit score, that will lower the score.
“It’s actually a good practice to keep tabs on your credit to avoid identity theft,” Rossman said. “I like the idea of checking your own credit regularly. You can do it for free at annualcreditreport.com.”
Rossman told News 6 many banks will give you a credit report at no charge if you are an account holder with that bank.
Finally, anyone that thinks a low credit score will block your chance at getting a credit card is wrong.
Rossman said there are products available to help consumers build or rebuild their credit.
One option is a secured card. The consumer puts down a cash deposit that serves as their credit line and they pay it back every month.
For more information on debunking banking myths, click here.
If you have an investment, tax or consumer issue, email makeendsmeet@wkmg.com or text the words “Make Ends Meet” along with your issue to 407-676-7428.
Get today’s headlines in minutes with Your Florida Daily: