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Watch out for this credit score myth

On Behalf of | Jul 3, 2018 | Bankruptcy

Credit scores impact people’s lives in all kinds of ways. So, a person can have many worries when his or her score drops to a low level. Individuals in such situations may make raising their score a top priority.

When pursuing this goal, having the right information is critical. Misassumptions could lead a person down the wrong path. Unfortunately, there is one myth regarding credit score improvement that appears to be quite common here in the United States.

This myth relates to carrying a credit card balance. A recent report estimated that around 43 million American credit card users have carried a credit card balance to try to boost their credit score. However, experts point out that carrying a balance has no positive effect on credit score.

In fact, carrying a balance could instead have the potential to land a person in debt trouble. This because carrying a balance exposes a person to credit card interest. This could increase the financial pressure on a person, which in some cases could making keeping up with one’s bills (including credit card bills) much more difficult.

Why do you think the “carrying a balance” credit score myth is so common?

When trying to repair one’s credit, understanding what does and doesn’t impact credit score is critical. This is among the information it can be important to have when considering bankruptcy in response to debt difficulties one is facing. Skilled bankruptcy attorneys can help individuals here in Tennessee get the right information, and avoid misassumptions, when making decisions related to bankruptcy.