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.

$775,000

5 Bedrooms
5 Bathrooms
5,596 Sq Ft
0.890 Acres

3265 Foxridge Drive Jasper, Indiana

View Property

Listing courtesy of Brenda Krempp from RE/MAX Local.

$724,600

3 Bedrooms
4 Bathrooms
4,319 Sq Ft
1.600 Acres

1015 W 15th Street Jasper, Indiana

View Property

Listing courtesy of Caroline Gobert from ERA FIRST ADVANTAGE REALTY, INC.

$624,900

3 Bedrooms
2 Bathrooms
2,940 Sq Ft
14.820 Acres

1089 N 400W Jasper, Indiana

View Property

Listing courtesy of Zach Holt from Whitetail Properties Real Estate.

$624,000

4 Bedrooms
4 Bathrooms
3,906 Sq Ft
0.595 Acres

3289 St Charles Street Jasper, Indiana

View Property

Listing courtesy of Annette Wigand from ERA FIRST ADVANTAGE REALTY, INC.

$399,000

3 Bedrooms
2 Bathrooms
3,076 Sq Ft
1 Acres

3515 Villa Drive Jasper, Indiana

View Property

Listing courtesy of Leanna Graves from RE/MAX REVOLUTION.

$399,000

3 Bedrooms
3 Bathrooms
2,650 Sq Ft
0.780 Acres

3264 Lakeside Dr. Jasper, Indiana

View Property

Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

$360,000

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.

$340,000

4 Bedrooms
4 Bathrooms
2,961 Sq Ft
0.294 Acres

333 Daisy Lane Jasper, Indiana

View Property

Listing courtesy of Linda Schroering from CENTURY 21 SCHROERING REALTY.

$325,000

3 Bedrooms
2 Bathrooms
1,650 Sq Ft
0 Acres

614 W 34th Street Jasper, Indiana

View Property

Listing courtesy of Daniel Hoffman from HOFFMAN & MULLEN REALTY INC.

$319,900

5 Bedrooms
3 Bathrooms
2,377 Sq Ft
0.346 Acres

1780 Sweet Gum Drive Jasper, Indiana

View Property

Listing courtesy of Amanda Childers from Hawkins & Root Real Estate.

$315,000

3 Bedrooms
2 Bathrooms
3,232 Sq Ft
0.520 Acres

3508 N 600 W Road Jasper, Indiana

View Property

Listing courtesy of Caroline Gobert from ERA FIRST ADVANTAGE REALTY, INC.

$309,000

5 Bedrooms
3 Bathrooms
2,730 Sq Ft
0.680 Acres

580 Riverside Drive Jasper, Indiana

View Property

Listing courtesy of Jud Collett from Key Associates Signature Realty.

$289,000

3 Bedrooms
2 Bathrooms
1,648 Sq Ft
0.340 Acres

4130 N Portersville Road Jasper, Indiana

View Property

Listing courtesy of Gina Mehringer from F.C. TUCKER EMGE.

$274,900

3 Bedrooms
3 Bathrooms
2,172 Sq Ft
0.460 Acres

1244 W 14th Street Jasper, Indiana

View Property

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

$269,900

4 Bedrooms
2 Bathrooms
2,168 Sq Ft
0.200 Acres

319 E 5th Street Jasper, Indiana

View Property

Listing courtesy of Seth Yates from Key Associates Signature Realty.

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!