We’ve all heard of them – the credit score myths that pop up just when you’re getting ready to apply for a home loan.
Why is it important to care about your credit score? Lenders use credit scores to evaluate how likely you are to repay a loan in a timely manner. The higher your credit score, the better you look as a borrower to potential lenders.
Here are the most common credit score myths I hear from prospective buyers:
Myth: Checking your credit score will lower your score. You can check your own credit score as many times as you want. It won’t impact your score as long as you are pulling it from a consumer website or directly from one of the 3 Bureaus (Equifax, Experian and Transunion). Consider signing up for a service like Credit Karma to continuously monitor your score and be alerted when something is off.
Myth: I pay for everything with cash and have no debt = I have great credit. Absolutely false! This person probably has a N/A for a credit score and most lenders will automatically turn him/her down.
Want to know more about credit scores as they relate to home loans? Contact me today. I’m happy to guide you through the process to get your score into tip-top shape for your home buying experience.