5 Myths About Building Your Credit You Should Ignore

Published On: September 3, 2022|Categories: Blog, Buyers, Home Buyers|Tags: , , , , , |

5 Myths About Building Your Credit You Should Ignore

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:

  1. You have to use a lot of credit to build up your score
  2. You should close your credit cards after they’re paid off
  3. It’s okay if you make a late payment thanks to grace periods
  4. You should always add your spouse to your accounts
  5. 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.

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:

Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

This charming classic home in Jasper offers an inviting blend of modern updates and timeless appeal. With 3 bedrooms and 2.5 baths, it provides ample space for comfortable living. The open-concept living and dining room enhances the flow of the main floor, leading to a fully stocked kitchen that overlooks a beautiful level fenced yard and patio—perfect for outdoor gatherings. The expansive master bedroom is a retreat in itself, featuring a his and hers bath, a large walk-in closet, and access to a private deck with stairs to the backyard. Upstairs, two bedrooms with spacious closets and a full bathroom offer plenty of room for family or guests. The large family room on the lower level is ideal for entertaining, complete with a bar area with plumbing available, Wall mounted TV above a cozy gas fireplace, half bath, and backyard access. The basement adds extra versatility with two finished bonus rooms, a potential office or sitting area, and a large laundry room. The outdoor space is a highlight, offering a storage area with overhead door and generous room for relaxation and play. Don't miss the chance to explore this captivating property through the 3D virtual tour! $342,000 Active

1153 W 13th Street Jasper, Indiana

3 Beds 3 Baths 4,541 SqFt 0.36 Acres

Listing courtesy of Amy Uebelhor from SELL4FREE-WELSH REALTY CORPORATION.

Don't miss your opportunity to see this cute 3 bedroom, 2 bathroom home in Dubois. Resting on approximately 1.3 acres, this home offers an abundance of yard space to entertain, garden, and more. Step into the home, filled with natural light. This split floor plan features two bedrooms on one side, and an updated owner's suite. The owner's suite includes a tile shower, walk-in closet, and french doors leading onto a private porch. This home offers the perfect blend of modern comfort and versatility. $274,700 Active

7975 E State Road 56 Dubois, Indiana

3 Beds 2 Baths 1,926 SqFt 1.3 Acres

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

This super cute, 3-bedroom, 2-bath Craftsman-style ranch offers comfort and character inside and out. Located in a desirable northside neighborhood, the home features a split floor plan and a spacious layout perfect for everyday living and entertaining. Step into the welcoming foyer that flows into the bright and airy living room, highlighted by a stunning coffered ceiling. The open-concept design connects the living area seamlessly with the kitchen and dining space. The kitchen boasts ample cabinet and countertop space and comes fully equipped with a range, dishwasher, refrigerator, and microwave. Enjoy outdoor living in the fenced backyard, complete with a patio and a handy storage shed—ideal for gardening or extra storage. The 2-car attached garage is the icing on the cake, offering both convenience and functionality. $289,700 Active

4229 New Birch Drive Jasper, Indiana

3 Beds 2 Baths 1,429 SqFt 0.24 Acres

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