What You Need To Know About Your Credit Score

by Michael Tarallo 03/15/2020

When you want to buy a home, you know that good credit will be necessary. You may have heard some things about your credit score that just aren’t true. Read on to set the record straight on some of the most significant misconceptions about credit. 


Checking Your Credit Only Gives You Knowledge


Checking your credit score or report will not lower your score. The only way checking a score is damaging to a credit score is in the form of credit inquiries. This is when a lender, employer, or other merchant checks your credit in order for you to either gain employment or open a new line of credit. You have the right to review your score without it being impacted. 


You Shouldn’t Carry Balances


The best way to keep a high credit score is to use a credit card and pay the balance off in full each month. It’s a false belief that carrying a balance is an excellent way to increase your credit score. You need a low debt level to maintain a good credit score. 


Your Age And Income Have Nothing To Do With Your Score


It’s natural that older people who have a longer credit history have a better shot a good credit score, but your age has nothing to do with your score. It all depends on when you established credit. Some people started their credit histories early because their parents opened accounts for them. Others needed to wait awhile before opening their first credit card account. 


Your income also is not a factor in determining your credit score. It may be true that if you have a higher income, it’s easier to stay out of debt, but the amount of money you make has no direct impact on your score. 


You Cannot Access Your Credit Score For Free


You have a legal right to obtain a free copy of your credit report once a year but, your credit score isn't included in this report. There are free services that are outside of your credit report that will give you your credit rating, but you need to search for them. It’s a good idea to check your credit report periodically, but you should also know your score especially if you're getting ready to make a big purchase such as buying a home.


Your Credit Matters More Than You Think


While you know your credit score matters when you head to get a home loan, you may not know just how many entities take your credit into account when you apply for them. Some things you may do where your credit score matters:


Apply for a job

Apply for a credit card

Rent an apartment

Sign up for phone and Internet services

Get other utilities in your home


Your credit history gives a picture to the world to let them know if you’re financially stressed. If you have gone through rough patches, there are always ways to bring your score up. If you had a judgment ruled against you in a lawsuit, for example, that would only appear on your credit report for a certain number of years. Lenders will often allow you to explain bumps in your credit report as well. Understanding credit is half the battle to a good score!      

About the Author
Author

Michael Tarallo

MEET MICHAEL 

Michael Tarallo is the tenacious, confident real estate professional needed for today's complex real estate world. With his comprehensive understanding of people and the process he will guide and assist you with your sale, purchase or investment. An excellent negotiator and all-around business savvy determined to deliver results.

A former Mount Kisco and current Pound Ridge resident, Michael has extensive knowledge of the local towns of Mount Kisco, Bedford, Bedford Hills, Katonah and Pound Ridge as well as the surroundings areas from the Bronx, through Westchester, Putnam, and Dutchess counties.

NYS Licensed Associate Real Estate Broker, member of the National Association of Realtors® (NAR), the New York State Association of Realtors® (NYSAR), the Hudson Gateway Association of Realtors® (HGAR), the Hudson Gateway Multiple Listing Service (HGMLS) and the Mid-Hudson Multiple Listing Service (MHMLS).

A Pace University grad with a BBA in Marketing, Five Star Professional 2017-2019, Top Producer 2016-2019.

Michael is accessible, energetic and ready to serve your real estate needs.

Born and raised in the Bronx, he now currently resides in Pound Ridge with wife Christine and 2 children, Michael Jr. and Angela. Michael is also a volunteer at the Pound Ridge Ambulance Corps.