::Credit Score - Free Credit Report

There are a wide variety of myths floating around about what you should and shouldn’t do to improve your credit reports and credit scores.
Wonder no more! PullCreditScore.com will tell you the facts and myths so that you are more educated about credit reports and your credit scores.

	1.	Your score will drop if you check your credit – This is not true. There are different types of inquiries (Soft and Hard). Checking your own report and score is counted as a "soft inquiry" and doesn't harm your credit at all. Only "hard inquiries" from a lender or creditor, made when you apply for credit or loan, can bring your credit score down a few points. Don’t worry about hurting your credit score while shopping around for a loan because multiple inquiries for the same purpose within a short amount of time (lets say a few weeks) are grouped together into a less damaging period of inquiry. The smart thing to do is give a copy of your credit report that you have pulled to get a good faith estimate on a loan from lenders before they start pulling your credit report. This way, you can find out how low they are willing to go on their interest rates

	2.	After paying off a negative record, it will be removed from your credit report – Negative records such as collection accounts, bankruptcies and late payments will remain on your credit report for 7-10 years. There are ways of getting them removed but it will take time and effort from your side. Paying off the account before the end of the set term doesn’t remove it from your credit report, but will cause the account to be marked as “paid.” It is still a good idea to pay your debts, it can improve your credit score, but the major improvement will come when the record expires.

	3.	Closing old accounts will improve your credit score – This is not true. Many people believe closing old and inactive accounts will improve your credit. In most cases, closing accounts will actually have the opposite effect. Think about it. Your available credit shows that you have access to money and yet you are not using them. Lender’s like to see this. Canceling old credit accounts can lower your credit score by making your credit history appear shorter. Think twice before closing the oldest account on your credit report. If you want to reduce your levels of available credit, ask for your credit limits to be lowered or close newer accounts instead. Remember that lenders and creditors want to see a long credit history so that they can determine how risky you are as a borrower.

Your credit score is calculated using a complex algorithm that takes into account hundreds of factors and values. It is very hard to predict how one change on your credit report can affect your score in terms of points deferential. For a person with a high credit score, just one late payment can cause a significant drop. If a person has a low credit score, it may not cause a large drop at all. Keeping a healthy credit score requires good judgment and understanding of the system. Keep paying your bills on time, reducing your debts and removing negative inaccuracies from your credit report. Good financial behavior is the most important factors for your credit score and it will always reward you for the better.