When it comes to credit there is a whole lot of questionable advice out there, and following it can have a real impact on your finances. Today we're here to be your credit myth busters - busting bad credit myths that might be costing you money.
"You need to keep a balance on your credit card to improve your credit score.”
Many people assume the best way to build their credit score is to use their credit cards and keep a balance on them from month to month. Luckily, that's not true! The absolute best way to build your credit is to pay off your cards in full every single month.
Carrying a balance from month to month means you’ll be paying interest, taking money out of your pocket. Feel confident skipping this advice and pay off those cards in full every single month.
"If you don’t have a credit score your only option is a really high interest rate."
While many lenders charge high rates for first-time borrowers that isn’t what we do here at Canopy. Charging a super high rate to a first-time borrower is like punishing someone before they’ve done something wrong. That isn’t who we are at Canopy Credit Union. So if you are looking for your first auto loan, personal loan, or credit card don’t accept a bad rate, come and see us instead.
"You should pay someone to help improve your credit score."
There are tons of credit repair companies that are willing to take your money to help with your credit, and some of them are questionable. The truth is, they aren’t doing anything that you can’t do yourself for free. If you don’t like where your credit score is we can help.
We offer individual financial coaching that can help you get your score moving in the right direction. Visit our financial coaching website www.canopycu.com forward slash coach to make an appointment to meet with a financial coach today. Our advice is free, and you don’t have to be a member to meet with us.