Biggest Myths About Your Credit Score

1. Paying Bills on Time Will Improve My Score

"That's definitely a good start," says Ulzheimer. "But it's not the key to the kingdom." With FICO scores typically ranging from 350 to 850, 35% of the points on your score are directly tied to whether you're making your payments on time, says Ulzheimer. That leaves 65% of your score that has nothing to do with missed payments. "You cannot hang your hat on whether or not you are just making your payments on time, and assume you have fantastic credit," he says.

2. Carrying a Balance Is Good _not true!!
"I'm quite sure the credit card industry started that [rumor]," Ulzheimer says with a chuckle. Although carrying balances will cost you in interest and financing charges, from a credit score perspective, there's nothing wrong with carrying a balance on your credit card. But very large balances will affect your "creditization" -- the percentage of your credit limit that you're carrying as a balance.

Maxing out your credit cards will hurt your score. What you really want is a relatively low balance -- never more than 15 percent of your overall limit.

The credit system is a scam designed to benefit bankers, and get people hooked on debt. Much of the way the "score" (our value as human beings to corrupt bankers) is calculated makes absolutely no sense. For instance, having no debt can hurt your credit score? See what I mean! You have to be in some debt and making payments, while accruing some interest to help bankers get rich in order to have a great "credit score." After working in a bank for over 10 years, I have seen plenty of proof that a great credit score is not a sign of wealth or financial well being, let alone "responsibility," as the banking and insurance industry try to fool the general public in to believing. I am glad I learned this because when the banking industry collapsed and I had no job, I too saw my "credit score" drop considerably, and I have found many ways around this system. This credit system enslaves us, and we are fooled in to believing we have to follow this corrupt system originally enacted by Fair Isaacs Corporation. DON'T USE CREDIT, unless you at least have some form of limited liability such as a corporation or LLC, and you will be certain to gain a return on investment above and beyond interest rates, otherwise, you are being taken sucker.

Not everyone who has bad credit or no credit is necessarily financially irresponsible or unable to manage money. How many people with great credit scores look great on paper, yet are broke in reality? Especially in todays economy, many people have bad credit who were normally the types with high scores, but just happened to have bad luck.