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.

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.

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.

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.

$1,100,000

4 Bedrooms
6 Bathrooms
6,861 Sq Ft
22.830 Acres

445 3rd Avenue Jasper, Indiana

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Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.

$637,000

4 Bedrooms
5 Bathrooms
5,388 Sq Ft
1.064 Acres

1987 Grandview Drive Jasper, Indiana

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Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.

$575,000

3 Bedrooms
3 Bathrooms
1,776 Sq Ft
6.260 Acres

1928 South A Street Jasper, Indiana

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Listing courtesy of Arlet Jackle from RE/MAX Local.

$399,000

3 Bedrooms
3 Bathrooms
2,940 Sq Ft
2.530 Acres

634 E Wright Road Jasper, Indiana

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Listing courtesy of Stacey Hurst from RE/MAX REVOLUTION.

$360,000

4 Bedrooms
2 Bathrooms
3,490 Sq Ft
0.371 Acres

307 Newton Street Jasper, Indiana

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Listing courtesy of Tama Stemle from RE/MAX Local.

$336,000

3 Bedrooms
2 Bathrooms
1,502 Sq Ft
0.344 Acres

900 Juniper Court Jasper, Indiana

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Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.

$334,900

3 Bedrooms
3 Bathrooms
2,734 Sq Ft
0.580 Acres

980 S Crestwood Dr. Jasper, Indiana

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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

$334,900

3 Bedrooms
4 Bathrooms
1,568 Sq Ft
1.100 Acres

4667 W Ireland Church Avenue Jasper, Indiana

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Listing courtesy of Marissa Goodness from Carpenter Realty LLC.

$270,000

3 Bedrooms
3 Bathrooms
2,548 Sq Ft
0.259 Acres

920 Brandon Avenue Jasper, Indiana

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Listing courtesy of Sandra Cave from RE/MAX Local.

$229,900

4 Bedrooms
3 Bathrooms
2,549 Sq Ft
0.124 Acres

612 W 8th Street Jasper, Indiana

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Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.

$208,000

2 Bedrooms
2 Bathrooms
1,800 Sq Ft
0.208 Acres

891 Giesler Road Jasper, Indiana

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Listing courtesy of Kevin Bayer from RE/MAX Local.

$198,500

3 Bedrooms
1 Bathrooms
1,086 Sq Ft
0.360 Acres

4862 N US 231 Highway Jasper, Indiana

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Listing courtesy of Kevin Bayer from RE/MAX Local.

$149,900

4 Bedrooms
2 Bathrooms
1,963 Sq Ft
0.101 Acres

1312 Mill Street Jasper, Indiana

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Listing courtesy of Felicia Drew from Carpenter Realty LLC.

$619,700

5 Bedrooms
5 Bathrooms
4,353 Sq Ft
1.115 Acres

470 Charlene Drive Jasper, Indiana

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Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

$599,000

1 Bedrooms
2 Bathrooms
662 Sq Ft
27 Acres

6272 N Kellerville Road Jasper, Indiana

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Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.

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