From Real Estate Educator Duane Gomer…
MYTHS ABOUT CREDIT SCORES AND THERE ARE MANY
#1- Your credit score drops if you inquire about your credit. That is called a “soft pull” and has no affect. Inquiries by lenders could slightly lower your score.
#2- You should close old or inactive accounts to help your score. This could shorten the measured duration of your credit history. Bad move.
#3- Paying off a negative record means that is taken off your record. False, it normally stays on for seven years.
#4- Co-signing doesn’t mean that you are responsible for the account. This is FALSE.
#5- Making on-time rental, utility and cell phone payments helps the credit score. Not at this time as they are not considered; a bill has been submitted in Congress, but it is not moving.
#6- Your credit score reflects changes or trends in your payment behavior. Credit scores are only a moment-in-time glimpse at consumer risk.
These answers are from an article in a California Assoc. of Realtor’s publication. If you have a question, contact your friendly DBO or BRE Mortgage Loan Originator. Protect your credit score, it is the only one you have.
BTW, want to ask your MLO a good question? Ask them, “What should you not do between applying for a loan and closing the loan”? For example, do not buy a car. See you MLO’s in class soon. July 27th we are starting CE Season.
Real Estate, Notary Public & MLO Education
CalBRE Sponsor #0054 & NMLS Provider #1400388
Call: 800-439-4909 / Text: 949-374-3943
23312 Madero St. #J, Mission Viejo, CA 92691