Popular Credit Myths


It’s great to have credit. It can help you buy a house, obtain lower finance rates, increase credit limits, and provide you with more negotiating power. Although TitleBucks® doesn’t check your credit*, we want to make sure you’re educated on the facts and fiction of the credit world.

Fiction: You must carry a balance on your credit card to build a credit history.

Fact: Using your credit card will establish a credit history; however, amounts left unpaid can be problematic. To keep your overall debt-to-credit limit low, use your credit card and pay off the bill in full each month.

Fiction: You can’t come back from bad credit.

Fact: Any credit can be rebuilt over time. By paying on time, looking for better credit options, and paying the balance in full, your credit score can improve. Additionally, the older your negative credit information is, the less significant it becomes.

Fiction: The best way to improve credit is to pay off all accounts and close them.

Fact: This is only partly true. Paying off debt is the fastest way to improve your credit score. Closing accounts, however, hurts your credit score. To improve credit, you must have available credit. Closing accounts eliminates any available credit, making balances appear to be higher compared to the overall limits.

As you work to improve your credit score, we continue to accept any credit. At TitleBucks® we want to get you the bucks you need. That’s why we offer a quick approval process, competitive rates, and friendly and convenient customer service. Just fill out the form at the top of the page to apply!