PAYMENT HISTORY
Your credit limit will improve if you pay your bills on time, every time
TRUE: Regular on-time bill payments will raise your score more than any other actions
Using 30% or less of your available credit is bad for your score.
FALSE: Using less than 30% of your total available credit helps your score.
It will negatively impact your credit score to have no credit history.
TRUE: zero credit history means you haven’t built good credit or bad credit
It will not impact your credit score if you open a few credit cards and never use them.
FALSE: Never using your credit will be seen as a “future risk”, despite having available credit.
Declaring bankruptcy will negatively impact your credit score.
TRUE: Declaring bankruptcy means you won’t pay back your loans.
Your credit limit will not be impacted if you skip a payment and make it up the next month.
FALSE: Skipped payments negatively impact your score, even if you make them up.
It is a good idea to have a credit card with a high limit and to maintain a low balance.
TRUE: Having a low utilization ratio is a plus.
It will negatively impact your credit score to have a long credit history.
FALSE: A long credit history is a positive, as long as it is not a history of late or missed payments.
It will not impact your score if you have a few credit cards maxed out.
FALSE: Many accounts with high utilization will hurt your score.
It will positively impact your score to have a mix of different credit types.
TRUE: A mix of credit helps your score as long as you pay them all in full and on time.
Your credit limit will not be impacted if you pay your bills late just once.
FALSE: Late payments hurt your score.
It is a good idea to have a credit card with a low limit and a low balance.
FALSE: Low balance and low limit can still make a high utilization ratio.
It will benefit you to have a long history of paying back long term loans.
TRUE: The longer your history of positive payments, the better.
It will positively impact your credit score to have it checked by lenders.
FALSE: Too many “hard inquiry” credit checks will negatively impact your score.
It will not impact your score to have a single line of credit for all your needs.
FALSE: A variety helps your score, not just a single source.
Your credit limit will be positively impacted if you use it for regular expenses and pay it off immediately each time.
TRUE: Constant use of your card, paying it off in full and on-time, will build up good credit.
It is a bad idea to pay a big outstanding balance off all at once.
FALSE: Paying off a balance means you improve your utilization rate (lower it) to free up credit for future expenses.
It will not impact your credit score to cancel your oldest credit card.
FALSE: Your score will be negatively impacted by canceling your longest credit history.
It is a good idea to open a lot of credit accounts in a short time.
FALSE: Too many accounts shortens credit length and adds hard inquiries.
It will not impact your score to have a few credit accounts you use sparingly
TRUE: Low credit use and development of credit history helps your score.
It will benefit your credit score to close a credit card to begin paying it off.
FALSE: It will reduce your overall available credit which negatively impacts your utilization ratio. However, closing the account will help you get control of your credit use.