4 Credit scores myths

2013-04-17 | 08:16:19

Myth 1: You must use major credit cards to build a good score

Truth: If you're unable to obtain a major credit card, there are other ways. Making regular payments on installment loans such as department-store cards.

Myth 2 : You can make up for mistakes such as late payments

Truth: It takes time, but your credit will become positive as you build consistency with timely payments.

Myth 3 : Paying cash boosts your score

False: You need to use credit in order to demonstrate your ability to make payments. Using credit at least once every 30 days and making payments on time will keep you in good standing.

Myth 4 : I will not qualify for a mortgage if I've had a poor credit score

False: Lenders look at your entire financial picture but it will make it more difficult.

Source: News Canada www.newscanada.com