LITTLE ROCK, Ark. (KTHV) -- When one year ends and another begins, it's hard not to look ahead and strive to do better. We're helping you do that this morning with these five credit myths to ditch in 2013 from Credit.com and Yahoo!.
1. Having too much available credit on credit cards can hurt your score. There's nothing in the scoring formulas that penalize a consumer for having too much available credit. If anything, it might prove your credit worthiness, as more available credit and lower balances tend to signify better behavior.
2. Income is included in a credit score. That's not to say that income doesn't matter, but it does if you want to lower your debt or credit utilization. But lenders are more interested in your credit-worthiness than your ability to pay it.
3. You'll share a credit report with your spouse. Consumers have individual credit files and scores only, married or now. But in the case of joint accounts, both people are responsible for paying the debt. Your spouse's credit behavior will be reflected on your credit report for that account good or bad. But your score and your report is yours alone.
4. Carrying balances on credit cards from month to month is better for your score than paying them off in full. All running a balance will get you is interest charges. If you haven't done so already, now might be a good time to set up automatic bill pay so that you pay off every bill in full each month.
5. A credit repair agency can get any negative information off of your credit report. First of all, if late payments are listed accurately on your credit report, no one can legally remove them, no matter what they promise. But if the information is inaccurate, you can file a dispute with the credit reporting agency, asking them to remove the negative info that doesn't belong to you.
(Source: Credit.com and Yahoo!)