Credit Myth 3: Making More Money = Better Credit?

Do you have to make a ton of money in order to have better credit? We thought it was important to clear up this common misconception.

Credit Myth:
The more money you make, the better your credit will be.

Fact:
The main thing that contributes to good credit is how you manage it - not how much money you make. The 4 main things to monitor are

(1) Credit Age: The average age of all your credit cards. (Think twice before closing that old one with no annual fee)

(2) Payment History: How consistent you are in paying your bills on time.

(3) Utilization: How much credit you used but didn’t pay off each month. (Remember to pay your balances in full if you can each month)

(4) Mix of Credit: A little known thing that credit bureaus look for is how many different types of credit you have. (Credit Card, Mortgage, Personal Loan, etc.) The better the mix, the better the mark you’ll receive from the credit bureaus.