Credit Score Myths

13 Credit Score And Credit Report Myths Busted

Do you have a high FICO credit score? FICO stands for Fair Isaac Corporation, which is the company that created the industry standard credit scores used by almost all loan lenders.

If you have a high credit score, you’re one of the lucky ones. When a loan lender looks at your credit report, a higher credit score shows how likely you are to repay a loan on time. The higher your credit score, the more likely you will be approved for a line of credit.

1. Myth: If you always pay bills on time, you don’t need to worry about checking your credit report or credit score.

Busted: Sometimes mistakes can creep onto your credit report, from innocuous stuff like incorrect date of birth or missing accounts that are in good standing. Identity theft can also be a problem where someone has fraudulently opened accounts in your name. It’s recommended to check your report yearly to make sure the information on file is correct.

2. Myth: Your credit score is merged with your spouse’s credit score.

Busted: Credit scores are not like assets that become merged upon marriage. Your credit score is yours and no-one elses. But your partner’s credit history can affect your ability to qualify for credit together.

3. Myth: Checking your own credit report can hurt your credit score.

Busted: You can check your credit score as often as you wish, but it doesn’t change your credit score.

4. Myth: Opting out of pre-approved offers will benefit your credit score.

Busted: Occasionally you may receive pre-approved offers through the mail coming from banks. If you are opting out to stop receiving junk mail, sure, go ahead. But opting out of these offers will not benefit your credit score what-so-ever.

5. Myth: If you correct an error on a credit file with one credit reporting agency, the correction will carry through to all agencies.

Busted: Each credit bureau maintains its own separate database. When you find an error on your credit report from one of the three major agencies, you should also check if it also appears on the credit reports from the other two.

6. Myth: Settling a judgment or lien will remove that item from your credit reports.

Busted: Most negative events that have been resolved will fade away from your report after 7 years, except for bankruptcies that can last up to 10 years. They do not disappear immediately after being settled.

7. Myth: You can’t have any negatives on your report.

Busted: If you have a missed payment or you’ve even been bankrupt, don’t worry too much. Over time, negative marks against your report fade away into less significance. It’s the most recent credit data that is used in calculating your credit score.

8. Myth: Requesting a lower credit limit will benefit your credit score.

Busted: If you can control your spending and finances, there’s no point asking for a lower credit limit because it will not benefit your credit score. But keep in mind, lowering your credit limit will effectively increase your debt to credit ratio and this would have a negative effect.

9. Myth: Filing for divorce will release you from financial responsibility for an account.

Busted: No. Since your credit score is yours and no-one elses, your credit score follows you, regardless. If you have joint debts between you and your ex, divorce settlements do not carry weight with creditors.

10. Myth: Using debit or check cards can help rebuild your credit score.

Busted: Debit/check cards have no bearing on your credit score. However, if you overdraw your account using a check card and fail to repay the negative balance, this may harm your credit score if the bank files for collection.

11. Myth: The higher your credit score, the lower interest rate you’ll get.

Plausible: This is not always the case because loan lenders calculate interest rates using a grading system. Scores that fall within a specific range will be given a grade corresponding to a particular interest rate.

That means a score that is at the top of the range wont get a better rate than a score at the bottom of the range. Eg, a score between 760 and 850 might get an “A” grade and be eligible for the lender’s lowest interest rate. Therefore, raising your score from 760 to 800 would not affect your interest rate.

12. Myth: Your credit report will show a zero balance for any credit cards paid off before the due date.

Busted: It’s not the due date that’s important. Lenders usually report to the credit bureaus on the statement closing date that appears on your statement. It’s generally 20 to 25 days before the due date.

13. Myth: Your salary and your level of education can affect your credit score.

Busted: Neither your salary nor your level of education affects your credit score. Lenders may consider this information, but it does not change your FICO score.

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How To Get Backlinks

10 Easy Ways How To Get Backlinks To Your Website


For the purposes of search engine optimization (SEO), it’s very important to learn how to get backlinks, which is when another website links to a page on your website.

Increasing the number of inbound links to our website has a positive effect on Google’s search engine rankings. Don’t make these mistakes in your SEO efforts though. There can also be negative consequences to your actions such as building up inbound links too quickly.

If you’re an Internet Marketer, Google owns you. Everything you do is to satisfy Google in some way or another, directly or indirectly. That’s because Google’s web properties get an enormous amount of overall Internet traffic that Internet Marketers want to tap into. Anyone who’s online (and doesn’t live in China) will probably interact with Google on any given day.

If you’re just an average web surfer, you most likely use Google to find information, watch videos (on YouTube, owned by Google), use Google Drive for file storage, Gmail for emails, Blogger for your personal website (also owned by Google). Your phone might use the Android operating system (owned by Google) and the list goes on and on … Google, Google, Google.

Most importantly, if you have a website, you want to be at the top of Google’s search engine results page. You may spend thousands of dollars on SEO and dozens of hours of your own time making sure your website has the best title, meta tags and content. Read How Copywriting Killer SEO Page Titles Destroy The Competition

You also want to make sure your written text is rich in useful keywords so that people searching for you, your product, or your service, can find you.

The point is that Google is practically inescapable and understanding how their search engine works is vital.

How To Get Backlinks

The way Google ranks it’s search results page is with a mathematical algorithm it calls PageRank.

PageRank tries to find the “best” website page for any given search term. It will then rank each result from best to worst. The top 10 best results are displayed on page 1.

So how does it know what is the “best” page? Well, the honest truth is that it’s extremely complex and no human can fully comprehend all the factors that goes into determining the “best”. Google have super-computers to do that.

But let me explain…

Back in the “old” days, “best” was largely determined by the number of links pointing at a website. So, I could simply have 100 other websites linking to my website and I’d get a good ranking.

The thinking goes, that if other websites link to my website, I have something worthwhile to say. So Google predicts my website would be a better result than another website with less links pointing at it. That’s a simplistic explanation, but I’m just trying to illustrate the point.

Skip forward to today, and while the number of links pointing at your website is still a large factor in PageRank’s algorithm, there is something new to skew the results. That “new” is social media

Google began to calculate how much “authority” a page has. That is, not simply how many links are pointing at that page from other websites, but the frequency in which that page is discussed, for example through Facebook, Twitter, Google+, LinkedIn, blogs, forums, etc.

A page that is linked to during a public conversation, or shared on a social network carries a lot of weight. Over time, if a page is talked about less frequently (or not at all), it’s PageRank can drop and so can your ranking in the search results page.

The more your website is talked about and linked to, the higher “trust” and “authority” your website seems to have, and you will be rewarded in the search results page with a higher ranking.

PageRank is not a static value. It ebbs and flows.

Ultimately, these changes mean that the days of manipulating search results and finding loopholes are gone, and with it, a whole bunch of old-school Internet Marketers who haven’t kept up with the trends.

The end goal in trying to be in the #1 position of Google’s search results page is to get visitors to your website, also known as “traffic”.

How To Get Backlinks?

There are a number of ways to increasing your backlinks, and therefore your “authority” according to Google.

You could use software like Backlink Beast to help get you links on other websites through automation, or you could put some time into the following:

  1. Social bookmarking sites (eg, Reddit, StumbleUpon,, etc).
  2. Guest blogging – write an article for another blog, which then contains a link to your website.
  3. Blog comments – contribute quality commentary on blogs, link your name to your website.
  4. Submit to article directories (eg, EzineArticles, GoArticles, Amazines, etc).
  5. Social media profile links – create accounts that include your website link in the profile (eg, Twitter, Facebook, Google+, etc).
  6. Forum discussion boards – put website link in signature and contribute to discussions.
  7. Submit your blog RSS feed (eg, Feedburner, etc).
  8. Private blog network – create dozens of blogs on free blogging platforms and link to your primary site (eg, Blogger, Tumblr, Squidoo, etc).
  9. Press releases. Cost Of Press Release – 5 Do’s And 5 Don’ts To Save You Money
  10. Paid advertising – ask a website owner to put your link on their page for a fee.

When adding backlinks with these 10 methods, you’ll be linking to your website using anchor text keywords that related to your website.

If you are serious about SEO and are building backlinks right now, you MUST read our next article Why Keyword Anchor Text Links Got Smashed By Google

Disclaimer: Links to 3rd party sites included within this article denoted with /go/ in the URL may result in commission being earned if you decide to make a purchase.

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