A lot of credit score myths about FICO score ratings get spread around and  some of them are just false information. It is possible that even lenders can give  you the bad advice and it can get confusing. The bottom line is that bad  information that costs you money regardless of who you get it from.

It is vital that you know what will hurt or help your credit score  points. To make it clear, here are some of the most common credit score myths.

Checking your credit report will have negative effects on your credit score

Checking your own credit report and credit score coun

ts as a soft inquiry and does not impact in a  negative way your score. However, if anyone else like a lender or credit card company is  checking your credit report, this is considered a hard inquiry and will generally get cut around 5 credit score points.

Closing old accounts will improve your credit report score

Sometimes even lenders will tell you to close your old and inactive accounts as a way to improve your credit report score. Usually, closing old accounts will actually have the  opposite effect with the current credit score rating system. Canceling old credit accounts can actually  decrease your credit score because it makes your credit history appear shorter.

You need to check more than just FICO score rating

If you ever hear this from anyone, take it as a red flag. All of the three major credit reporting  bureaus offer FICO credit score ratings using the formula developed by Fair, Isaac. Even though each one gives the scores a different name you only need a fico score rating from the  three major credit reporting bureaus.

At Equifax, the FICO score rating is called the Beacon credit score. At TransUnion, it's called Empirica. At  Experian, it's known as the Experian/Fair, Isaac Risk Model.

Verify your credit reports from all three major credit reporting bureaus before you apply  for a big loan like a mortgage. Fix any mistakes in all three reports before you go for a loan  because it takes time to correct your credit report.

Credit counseling will hurt your score

The current FICO credit score rating system doesn't take into account any reference to credit  counseling that may be in your file. The researchers at Fair, Isaac, the company that created the FICO  credit scoring rating system, found that people getting credit counseling didn't default on their debts any more  often than anyone else.

Keepn in mind that, any late payments you've had with creditors will hurt your credit score. Credit counseling can hurt your ability to get a loan because you probably have had trouble paying creditors.

Some lenders will back away if you are in credit counseling. Others may see it differently, but usually will  charge you higher interest rates than if you had perfect credit.

I couldn't repeat this enoughthe  best way to improve your credit report score is paying your bills on time and paying down credit  card debt. Check your credit report regularly for any errors and make sure you don't fall for these common  credit score myths.

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