GREENSBORO, N.C. — Your credit score is important. It determines the interest rate you pay when you get a loan, it's considered when you fill out a rental application for an apartment, and your insurance rates for home and auto can increase if your score is low. Employers are now often checking credit scores of possible employees.
The number one factor in determining your credit score is bill payment history.
So, is it a myth or fact that the bills looked at are only credit card bill payments?
"You want to build that positive habit of paying ALL of your bills on time, it's hugely important when you prioritize making payments on time it shows you can manage your finances," said Christina Roman, Experian’s Consumer Education Advocacy Manager.
Automate your payments so nothing slips through the cracks and you make all payments, cable, phone, power, and credit cards on time.
MYTH OR FACT: Every time you check your credit report it lowers your credit score.
"There is that common myth that if you check your credit report it's going to hurt your credit score. That is not true. You want to know what your lender is reporting to the credit bureau, you want to know what is being reported in your credit report," said Roman.
You can check your credit report for free, and every week online if you like, through AnnualCreditReport.com. You won't get your credit score on that site.
The three credit bureaus, Experian, Equifax, and Trans Union all offer free reports and credit scores...as long as you register with their sites.