Credit Myths: Debunked

MYTH: Checking your own credit score lowers your score.

Truth: This is considered a soft inquiry, which doesn’t impact your score. We encourage you to check your score and know where you stand before seeking credit.*

Truth: Credit card utilization is an important part of your credit score—closing a card with a high limit can inflate your overall utilization rate. Consider all of the pros and cons of closing an account before doing so.

MYTH: Closing credit cards after paying them off increases your credit score.

Truth: Unfortunately, late payments and derogatory marks can remain on your report at least 7 years.*

MYTH: Settled debt drops off your credit report instantly.

Credit Rating: Good720 Updated Sep 3, 2012

Credit Rating: Good

300 580

VERY POOR POORVERY POOR FAIR GOOD EXCELLENTGOOD

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How well do you understand what’s impacting your credit score? This week, Credit Karma is wrangling three more common credit

myths to help set things straight.

For more educational resources and tips,visit www.CreditKarma.com today!

www.CreditKarma.com

*Screen images simulated