Greensboro, NC -- Get ready to play Credit Check. 2 Wants To Know's tackling some of the top debt and credit myths.
Question 1 -- true or false.
Only people with near perfect credit -- 800 or above -- get the best deals?
False! According to the website, life hacker - the best perks start at 760. That places you in the top tier range.
When you pay your mortgage every month on time your credit score should jump up.
Not always. Most credit models are more influenced by missed payments instead of on-time payments.
Not paying my bills on-time will hurt my credit.
Even then, there's a catch. Most of us think our mortgage is due on the first, we have to pay it on the first or it hurts our credit. But the truth is the bank won't report a late payment to credit agencies until it's 30 days past due. So pay sometime in the 29 days before then, and you're good to go.
"If you're in a situation where you're not able to pay make sure you stay in communication with your creditor and try to work out something, but that's the biggest thing as far as keeping your credit rating is making sure you don't have any 30 day late payments," Eric Gillespie of Family Services of the Piedmont said.
The same thing applies for other types of bills - like credit card payments and loan payments. But remember although you're credit score won't be impacted -- paying bills a few days late might mean you're hit with extra fees and interest rate hikes.
Say you missed a few payments and, 'oh no - your bills went into collections,' can paying off those creditors improve your credit?
Not really. Family Services says even if you pay, those accounts stay on your credit report for seven years. But the amount of debt you have will go down, so you could see a slight - very slight - bump up in your score.