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Consumer tips from the Better Business Bureau, job-search advice and technology news compiled by GateHouse News Service. From ideas for starting a business, to interviewing, to career education, we have you covered at all levels of employment. Plus, ...
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Consumer tips from the Better Business Bureau, job-search advice and technology news compiled by GateHouse News Service. From ideas for starting a business, to interviewing, to career education, we have you covered at all levels of employment. Plus, weekly updates on what's new and buzzworthy in the technology field.
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While many employers do consider credit when evaluating job candidates, they are looking at a modified version of credit reports. Not credit scores.
Jan. 20, 2014 11:24 a.m.



Tip of the Week



Some credit score myths seem to be fading, such as the mistaken belief that your credit score is beyond your control. In fact, 94 percent of respondents to a 2013 survey by the Consumer Federation of America and VantageScore Solutions, a credit score development company, knew that making on-time loan payments helps improve your credit score.



New myths, however, seem to constantly emerge.



Here are five new credit scoring myths and the truths that debunk them:



Myth No. 1: When applying for a job, a bad credit score can count against you.



The truth: While many employers do consider credit when evaluating job candidates, they are looking at a modified version of credit reports. Not credit scores. What's more, potential employers can't even look at a candidate's credit report unless a candidate gives express permission. And finally, if the employer's decision is adverse to the applicant, in most cases they must provide a copy of the report before taking any adverse action based in whole or in part on the report.



Myth No. 2: Closing a credit account is always good for your credit score.



The truth: While closing an account might make sense for your own personal financial situation, it also might count against your credit score. For example, if you pay off a credit card and choose to close the account, you've reduced your overall debt (which is good) but also reduced your amount of credit available for use (which may not be good for your score). How closing an account impacts your credit score will depend on how much other credit you have available on your other accounts and the general makeup of your personal credit history.



Myth No. 3: Anyone can submit information to the credit bureaus about you.



The truth: Lenders and other organizations such as collection agencies and even some landlords report unpaid debts, payment information and balances to the three national credit reporting companies: Equifax, Experian and TransUnion. By law, only companies that meet responsibilities mandated by the Fair Credit Reporting Act for accuracy may provide data to the three national CRCs. All organizations furnishing credit data to the credit bureaus must respond in the event that there is a dispute.



Myth No. 4: Your social media activity can affect your credit score.



The truth: While it's true that some lenders have begun reviewing social media accounts as a way to market their products and services more effectively, nothing you do on social media is included in your credit reports at the three national CRCs.



Myth No. 5: You only have one credit score.



The truth: You may actually have many ... dozens in fact. Although most people are familiar with the three national CRCs that gather credit information and use it to assign credit scores, there are actually many credit scoring companies. Your score may also vary depending on which CRC's data is used. What's more, different types of financial organizations may use different models to evaluate you. To get a true picture of your credit status, it's best to review your credit reports and credit scores from multiple sources.



— Brandpoint

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