6 Credit Score Myths You Need to Know Before Buying Santa Cruz Real Estate

Posted by Lauren Spencer on Friday, October 2nd, 2009 at 8:03am.

If you’re buying Santa Cruz real estate, you might start worrying about your credit score.  Unfortunately, there are a lot of myths about that score, and many individuals actually end up making things worse by following them. 

Read this list of common credit score myths and be in the know before talking to a lender:

1.  Close out your credit cards.  This is a big no-no, especially when you want to buy Santa Cruz real estate.  Closing out your older credit cards, especially, can actually make your credit score drop.

2.  Lower your credit limits.  Lowering your credit limits can hurt your credit score.  Part of your credit score is based on how much credit you have available.

3.  Get good credit by paying all your cards in full.  If you’re buying a home, part, if not most of the cost will be credited.  What lenders want to see is that you know how to handle credit, not that you don’t have any debt.  Instead, use 10% to 20% of your available credit and pay your bills on time.

4.  Comparison shopping for the best credit rates is a no-no.  Not true.  However, if you’re comparison shopping, do so in a short period of time.  That way, all queries hit around the same time and get lumped into one “hard” inquiry.

5.  Checking your score can hurt you.  You’re entitled to one free credit inquiry from each of the three top credit agencies per year.  Just make sure you're the one who asks for your credit scores instead of having a friend at a financial institution do it for you.

6.  The more you make, the better your score.  This is only true if you use the extra income to pay off your debts.  Making more money, by itself, will not increase your credit score.

Of course, you want to make sure you have the best credit score you can if you’re buying Santa Cruz real estate.  However, before you listen to the hype and myths, make sure you know the facts! 

If you’re looking for a new home, I can help.  Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.



1.  Make your credit score drop

2.  Comparison shopping

3.  three top credit agencies

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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