It’s hard to believe in an era where you can get a mortgage with no money down, but some people still cling to old-school myths about building credit. Here are five of the most common myths, and why you should ignore them if you’re trying to buy a home in Jasper.
5 Myths About Building Your Credit You Should Ignore
Check out these five common credit-building myths:
- You have to use a lot of credit to build up your score
- You should close your credit cards after they’re paid off
- It’s okay if you make a late payment thanks to grace periods
- You should always add your spouse to your accounts
- You should pay a credit repair agency to boost your score
Here’s a closer look at each.
Credit-Building Myth #1: You Have to Use a Lot of Credit to Build Up Your Score
You may have heard that you should carry a balance on all your credit cards, but that’s simply not true. In fact, you don’t need to use your credit cards at all to build up your credit score.
Paying your bills on time – including utility bills, rent, and other debts – is one of the best ways to improve your credit score. So even if you’re not using your credit cards, you can still build up your credit by making sure you’re paying all your bills on time, every time.
Related: How much does a home appraisal matter?
Credit-Building Myth #2: You Should Close Your Credit Cards After They’re Paid Off
Once you’ve paid off your credit cards, it may seem like a good idea to close the accounts to avoid temptation. But closing your credit card accounts can actually hurt your credit score.
That’s because one of the factors that goes into your credit score is your credit utilization ratio, which is the amount of credit you’re using compared to the amount of credit you have available. So if you close a credit card with a $5,000 limit, your credit utilization ratio will go up, which could hurt your credit score.
Related: 5 big red flags to watch for when you’re touring homes for sale in Jasper
Credit-Building Myth #3: It’s Okay if You Make a Late Payment Thanks to Grace Periods
If you have a grace period on your credit card, you may think it’s okay to make a late payment every now and then. But the truth is, even one late payment can hurt your credit score.
And if you’re trying to buy a home, even one late payment could jeopardize your mortgage application. If you’re working on building your credit, it’s important to make all your payments – including credit card payments – on time, every time.
Credit-Building Myth #4: You Should Always Add Your Spouse to Your Accounts
If you’re married, you may think it’s a good idea to add your spouse to all your credit accounts. But that’s not necessarily the case.
In fact, if you have a good credit score and your spouse has a bad credit score, adding them to your accounts could actually hurt your credit score. It’s often best to keep your accounts separate.
Related: Do you really need a home inspector?
Credit-Building Myth #5: You Should Pay a Credit Repair Agency to Boost Your Score
There are plenty of companies out there that promise to boost your credit score, but the truth is, you don’t need to pay anyone to do it. There are plenty of things you can do on your own to improve your credit score, like paying your bills on time and maintaining a good credit utilization ratio.
If you’re trying to buy a home in Jasper, don’t let these myths about building your credit stop you from achieving your goal. With a little effort and patience, you can improve your credit score and get your mortgage.
- 4 Bedrooms
- 6 Bathrooms
- 6,861 Sq Ft
- 22.830 Acres
445 3rd Avenue Jasper, Indiana
View Property
Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.
- 4 Bedrooms
- 5 Bathrooms
- 5,388 Sq Ft
- 1.064 Acres
1987 Grandview Drive Jasper, Indiana
View Property
Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.
- 3 Bedrooms
- 3 Bathrooms
- 1,776 Sq Ft
- 6.260 Acres
1928 South A Street Jasper, Indiana
View Property
Listing courtesy of Arlet Jackle from RE/MAX Local.
- 3 Bedrooms
- 3 Bathrooms
- 2,940 Sq Ft
- 2.530 Acres
634 E Wright Road Jasper, Indiana
View Property
Listing courtesy of Stacey Hurst from RE/MAX REVOLUTION.
- 4 Bedrooms
- 2 Bathrooms
- 3,490 Sq Ft
- 0.371 Acres
307 Newton Street Jasper, Indiana
View Property
Listing courtesy of Tama Stemle from RE/MAX Local.
- 3 Bedrooms
- 2 Bathrooms
- 1,502 Sq Ft
- 0.344 Acres
900 Juniper Court Jasper, Indiana
View Property
Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.
- 3 Bedrooms
- 3 Bathrooms
- 2,734 Sq Ft
- 0.580 Acres
980 S Crestwood Dr. Jasper, Indiana
View Property
Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.
- 3 Bedrooms
- 4 Bathrooms
- 1,568 Sq Ft
- 1.100 Acres
4667 W Ireland Church Avenue Jasper, Indiana
View Property
Listing courtesy of Marissa Goodness from Carpenter Realty LLC.
- 3 Bedrooms
- 3 Bathrooms
- 2,548 Sq Ft
- 0.259 Acres
920 Brandon Avenue Jasper, Indiana
View Property
Listing courtesy of Sandra Cave from RE/MAX Local.
- 4 Bedrooms
- 3 Bathrooms
- 2,549 Sq Ft
- 0.124 Acres
612 W 8th Street Jasper, Indiana
View Property
Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.
- 2 Bedrooms
- 2 Bathrooms
- 1,800 Sq Ft
- 0.208 Acres
891 Giesler Road Jasper, Indiana
View Property
Listing courtesy of Kevin Bayer from RE/MAX Local.
- 3 Bedrooms
- 1 Bathrooms
- 1,086 Sq Ft
- 0.360 Acres
4862 N US 231 Highway Jasper, Indiana
View Property
Listing courtesy of Kevin Bayer from RE/MAX Local.
- 4 Bedrooms
- 2 Bathrooms
- 1,963 Sq Ft
- 0.101 Acres
1312 Mill Street Jasper, Indiana
View Property
Listing courtesy of Felicia Drew from Carpenter Realty LLC.
- 5 Bedrooms
- 5 Bathrooms
- 4,353 Sq Ft
- 1.115 Acres
470 Charlene Drive Jasper, Indiana
View Property
Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.
- 1 Bedrooms
- 2 Bathrooms
- 662 Sq Ft
- 27 Acres
6272 N Kellerville Road Jasper, Indiana
View Property
Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.
Are You Thinking of Buying a Home in Dubois County?
Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties, as well as all the surrounding communities. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty, our site is directly connected to our local MLS. We update it with new homes every hour.
Sign up for new listing alerts so you can stay on top of the newest homes for sale – and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!
Start Your Home Search Here
Popular Jasper, Indiana Home Searches:
- Homes for sale Evansville, IN
- Southern Indiana homes for sale
- Santa Claus, Indiana cabins
- Homes for sale Newburgh, IN
- Homes for sale Dubois County, Indiana
- Homes for sale in Jasper, Indiana
- Homes for sale in Huntingburg, Indiana
- Ferdinand, Indiana homes
- Farms for sale in Indiana
- Homes for sale in Santa Claus, Indiana
Newest Homes for Sale in Dubois County
View the newest homes listed in Dubois County in the last 10 days:
445 3rd Avenue Jasper, Indiana
4 Beds 6 Baths 6,861 SqFt 22.830 Acres
Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.
102 OAK Street Huntingburg, Indiana
3 Beds 3 Baths 1,808 SqFt 0.689 Acres
Listing courtesy of Delmar Bromm from HOFFMAN & MULLEN REALTY INC.
1406 N Hunters Crossing Pass Huntingburg, Indiana
4 Beds 3 Baths 2,562 SqFt 0.180 Acres
Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.