According to a new article from Bankrate, the key to increasing your credit score is good payment behavior along with time and a healthy mix of credit types. But a quick fix? Despite what some commercials or online credit repair ads might proclaim, there are no real quick fixes when it comes to your credit. Smart financial moves such as closing accounts or paying off loans early may not be the credit boosters you think they are.
To help you sort the fact from the fiction, Bankrate tackles some long-held, but bogus beliefs that won’t help you build better credit.
For example, many consumers assume if they opt out of credit card offers, there will be fewer credit inquiries on their credit reports, says John Ulzheimer, president of consumer education at CreditSesame. However, those inquiries are considered “soft” inquiries and don’t affect your credit score, Ulzheimer says. You can keep the offers coming if you’d like, but doing so won’t help you build better credit.
Another myth is that closing old accounts will boost your score. But closing accounts typically won’t help your score and could possibly dent it, says Trey Loughran, president of personal information solutions at Equifax. The results can shorten your credit history eventually and leave you with a smaller amount of available credit, both of which can harm your efforts to build better credit. The length of credit history shows how seasoned of a borrower you are, so the more positive experience you have, the better.
