{"id":12739,"date":"2024-10-30T11:02:27","date_gmt":"2024-10-30T17:02:27","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=12739"},"modified":"2025-06-04T16:37:28","modified_gmt":"2025-06-04T22:37:28","slug":"credit-facts","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/credit-facts.html","title":{"rendered":"15 credit facts everyone needs to know in 2024"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"570\" height=\"189\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2019\/06\/couple-at-laptop-hero.jpg\" alt=\"couple looking at laptop to figure out finances\" class=\"wp-image-12740\"\/><\/figure>\n\n\n\n<p><em>The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <a aria-label=\"undefined (opens in a new tab)\" href=\"https:\/\/www.lexingtonlaw.com\/disclaimer\" target=\"_blank\" rel=\"noreferrer noopener\">See Lexington Law\u2019s editorial disclosure for more information<\/a>.<\/em><\/p>\n\n\n\n<p class=\"has-white-color has-text-color has-background has-link-color wp-elements-f6da5bc9f7a05db2a218896b40206b8a\" style=\"background-color:#00214f\">Some facts about credit you should know are: most credit scores are based on 5 key factors, most scores range from 300 to 850, checking your own score won\u2019t hurt it, and you should check your credit scores (and reports) frequently.<\/p>\n\n\n\n<p>With all of the misleading and incorrect information about credit floating around, it\u2019s no wonder some of us feel lost when it comes to our credit reports and credit scores. Fortunately, we\u2019re here to help set everything straight with these simple and clear explanations.<\/p>\n\n\n\n<p>We\u2019ve taken the time to compile the most important credit facts you need to know to understand your credit and everything that impacts it. Read on to learn everything you\u2019ve always wanted to know about credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Your credit score is based on five key factors<\/h2>\n\n\n\n<p>Most lenders make their decisions using FICO credit scores, which are based on five key factors. That means that when you apply for a new credit card or loan, these are the primary influences on whether you\u2019ll end up getting approved. Here are the five factors, in order of importance: payment history, credit utilization, <a href=\"https:\/\/www.lexingtonlaw.com\/education\/length-of-credit-history\">length of credit history<\/a>, credit mix and new credit inquiries.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"794\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-4.png\" alt=\"Infographic that illustrates five factors that impact your credit\" class=\"wp-image-17322\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-4.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-4-768x625.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<ul>\n<li><strong>35%<\/strong> \u2013 <strong>Payment history<\/strong>. Your ability to consistently make payments has the biggest impact on your score. Having late and missed payments is detrimental to your credit score, while a streak of on-time payments has a positive effect.<\/li>\n\n\n\n<li><strong>30% <\/strong>\u2013 <strong>Credit utilization<\/strong>. Your utilization measures how much of your available credit you\u2019re using across all of your cards. By using&nbsp;<a href=\"https:\/\/www.lexingtonlaw.com\/education\/credit-utilization\" target=\"_blank\" rel=\"noreferrer noopener\">one-third or less<\/a>&nbsp;of your total credit limit, you could help improve your credit.<\/li>\n\n\n\n<li><strong>15%<\/strong> \u2013<strong> Length of credit history<\/strong>. In general, having a longer credit history is helpful, though it depends on how responsibly you\u2019ve used credit over time. Using credit well over time signals to lenders that you can be trusted to manage your finances.<\/li>\n\n\n\n<li><strong>10%<\/strong> \u2013<strong> New credit<\/strong>. Applying for new credit leads to <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/negative-items\/what-is-a-hard-inquiry.html\" target=\"_blank\" rel=\"noreferrer noopener\">hard inquiries<\/a>, which can negatively impact your credit score. Spacing out your new credit applications\u2014and only applying for credit when you need it\u2014helps your score.<\/li>\n\n\n\n<li><strong>10%<\/strong> \u2013<strong> Credit mix<\/strong>. Having a variety of different types of credit\u2014like credit cards, an auto loan or a mortgage\u2014can influence your score as well. A diverse credit portfolio demonstrates your ability to successfully manage different types of credit.<\/li>\n<\/ul>\n\n\n\n<p>With the knowledge of exactly how your score gets calculated, you can make smarter decisions with credit.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Credit scores aren\u2019t as mysterious as they first appear, and you have control over all of the factors that determine your score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-credit-reports-are-different-than-credit-scores\"><a><\/a>2. Credit reports are different than credit scores<\/h2>\n\n\n\n<p>Although they are related, a credit report and a credit score are different. Also, it\u2019s a bit misleading to talk about a single credit report or a single credit score, because the reality is that you have several different credit reports, and your credit score can be calculated in many different ways.<\/p>\n\n\n\n<ul>\n<li><strong>A credit report <\/strong>is a collection of information about your credit behaviors, like the accounts you have and when you make payments. Three main bureaus\u2014Experian, Equifax and TransUnion\u2014each publish a separate credit report about you.<\/li>\n\n\n\n<li><strong>A credit score <\/strong>uses the information in your credit report to create a numerical representation of your creditworthiness. In other words, all of the information in your report is simplified into a single number that gives lenders an idea of how likely you are to repay a debt.<\/li>\n<\/ul>\n\n\n\n<p>Surprisingly, your credit report does not include a credit score. Instead, lenders who access your report use formulas to determine a score when you apply for credit. The most common scoring models are FICO and VantageScore, but lenders can make modifications to the calculations to give more weight to areas that are more important to them.&nbsp;<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>You\u2019ll want to be familiar with both your credit reports and your credit scores, as they each play a role in helping you obtain new credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-negative-credit-items-will-eventually-come-off-your-credit-report\"><a><\/a>3. Negative credit items will eventually come off your credit report<\/h2>\n\n\n\n<p>Negative items on your credit report can cause damage to your credit score. Negative items include late payments, collection accounts, foreclosures and repossessions.<\/p>\n\n\n\n<p>Although these items can lead to significant drops in your credit score, their effect is not permanent. Over time, negative items have a smaller and smaller impact on your score, as long as your credit behaviors improve so that more recent items are more favorable.<\/p>\n\n\n\n<p>Additionally, most <a href=\"https:\/\/www.lexingtonlaw.com\/credit-repair\/negative-items\" target=\"_blank\" rel=\"noreferrer noopener\">negative items<\/a> should remain on your report for seven years at the most due to the regulations set by the <a href=\"https:\/\/www.lexingtonlaw.com\/credit-education\/fair-credit-reporting-act\" target=\"_blank\" rel=\"noreferrer noopener\">Fair Credit Reporting Act<\/a>. A bankruptcy, on the other hand, can last up to 10 years in some cases.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Negative items can cause a decrease in your credit score, but they aren\u2019t permanent. Start building new credit behaviors and your score can recover over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-fico-credit-scores-range-from-300-to-850\"><a><\/a>4. FICO credit scores range from 300 to 850<\/h2>\n\n\n\n<p>Although it\u2019s possible to have a score that\u2019s lower than 300 or higher than 850, most scores will fall between this range. Scores that are considered good, very good or exceptional often make it much easier to get new credit cards or loans when you need them. On the other hand, scores that are fair or poor can make getting new credit more difficult.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"681\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-5.png\" alt=\"Infographic that illustrates FICO credit score ranges\" class=\"wp-image-17323\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-5.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-5-768x536.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<p>Here\u2019s an overview of the FICO scoring ranges:<\/p>\n\n\n\n<ul>\n<li>800 \u2013 850: Exceptional<\/li>\n\n\n\n<li>740 \u2013 799: Very Good<\/li>\n\n\n\n<li>670 \u2013 739: Good<\/li>\n\n\n\n<li>580 \u2013 669: Fair<\/li>\n\n\n\n<li>300 \u2013 579: Poor<\/li>\n<\/ul>\n\n\n\n<p>Remember, though: credit scores are not fixed and permanent. Your score responds to factors like payments, utilization and credit history, so positive decisions now will benefit your score in the long term.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>The FICO scoring ranges lay out broad categories to give you a sense of how you\u2019re doing with credit\u2014and can also help you set a goal for where you want to be.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. You have more than one score, but FICO is the most common among lenders<\/h2>\n\n\n\n<p>While there are multiple credit scoring models, the majority of lenders check FICO scores when making decisions. That means that when you apply for new credit\u2014whether it\u2019s a credit card, a loan or a mortgage\u2014the score that\u2019s more likely to matter is your FICO score.<\/p>\n\n\n\n<p>That\u2019s important to know, because many free credit monitoring services will show you score estimates or your VantageScore. Some credit card companies provide a FICO score, however, and you can also request to see the credit score that lenders used to make their decision during the application process.<\/p>\n\n\n\n<p>Fortunately, credit scoring models tend to reference the same data and weight factors fairly similarly. That means if you make on-time payments, keep your utilization low, avoid opening up too many new accounts and have a consistent credit history with a variety of accounts, you\u2019ll probably be in good shape regardless.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Knowing your FICO score can help you have an idea of how lenders will view your application for new credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-you-have-many-different-types-of-credit-scores\"><a><\/a>6. You have many different types of credit scores<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/fico-score-vs-credit-score.html\" target=\"_blank\" rel=\"noreferrer noopener\">Credit scores<\/a> vary based on the credit bureau reporting them and the credit scoring model used. The major credit bureaus all have slightly different information regarding your credit history. This means that these three, along with other credit reporting agencies, <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/news\/new-credit-scoring-system.html\" target=\"_blank\" rel=\"noreferrer noopener\">report several FICO credit scores to lenders<\/a> to account for different information they\u2019ve collected.<\/p>\n\n\n\n<p>There are also different scores specific to particular industries. For example, auto lenders review different risk factors than mortgage lenders, so the scores each lender receives might differ. Although it can get confusing, the most important things to remember are the five core factors that affect your credit score.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Although many people reference their credit score in the singular, the truth is that there are many different types of credit scores that take into account different factors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-7-checking-your-own-credit-won-t-hurt-your-score\"><a><\/a>7. Checking your own credit won\u2019t hurt your score<\/h2>\n\n\n\n<p>Many people believe that checking their credit score or credit report hurts their credit, but fortunately, this isn\u2019t true. Getting a copy of your credit report or checking your score doesn\u2019t affect your credit score. These actions are called \u201csoft\u201d inquiries into your credit, and while they are noted on your credit report, they shouldn\u2019t have any effect on your score.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"510\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-6.png\" alt=\"Checking your own credit score does not impact your credit at all\" class=\"wp-image-17324\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-6.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-6-768x402.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<p>Hard inquiries, on the other hand, are noted when lenders look at your credit during an application process\u2014and these can temporarily reduce your score. This is used to discourage you from applying for new credit too frequently. However, the effect is typically small, and after a couple of years the notation of a hard inquiry will leave your report.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>You can check your own credit report and credit score without any negative effect\u2014and we actually encourage you to do so to stay on top of your credit health.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-8-you-can-check-your-credit-score-and-credit-reports-for-free\"><a><\/a>8. You can check your credit score and credit reports for free<\/h2>\n\n\n\n<p>There are three main ways to <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/how-to-check-credit-score.html\" target=\"_blank\" rel=\"noreferrer noopener\">check your credit<\/a> for free. You\u2019ll likely want to take a look at both your credit reports and your credit scores. Here\u2019s how to get a hold of both of those:<\/p>\n\n\n\n<ul>\n<li><strong>You\u2019re entitled to a free credit report <\/strong>on a regular basis. You can access your reports by visiting <a href=\"https:\/\/www.annualcreditreport.com\/index.action\" target=\"_blank\" rel=\"noreferrer noopener\">AnnualCreditReport.com<\/a>, a government-sponsored website that gives you access to your reports from TransUnion, Experian and Equifax.<\/li>\n\n\n\n<li><strong>You may be able to check your credit score <\/strong>free by contacting your bank or credit card company. Additionally, many free services\u2014like Mint\u2014enable you to monitor your score for free. Just make sure to note which kind of credit score you\u2019re seeing, because there are many different scoring methods.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"814\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-7.png\" alt=\"Infographic that illustrates how to check your credit score and credit report\" class=\"wp-image-17325\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-7.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-7-768x641.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<p>The information you find in your credit report lays out the factors that determine your credit score. By scanning your report closely, you\u2019ll likely find out the best strategy for improving your score\u2014for instance, by improving your payment history or lowering your utilization.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Information about your credit is freely available, so take advantage of those resources to stay on top of your credit report and score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-9-your-credit-score-can-cost-you-money\"><a><\/a>9. Your credit score can cost you money<\/h2>\n\n\n\n<p>Ultimately, the purpose of credit scores is to help lenders determine whether they should offer you new credit, like a loan or a credit card. A lower score indicates that you may be at greater risk for default\u2014which means the lender has to worry that you won\u2019t pay back your debts.<\/p>\n\n\n\n<p>To offset this risk, lenders often deny credit applications for those with lower scores, or they extend credit with high interest rates. These interest rates can cost you a lot of money over time, so working to improve your credit score can have a measurable effect on your financial life.<\/p>\n\n\n\n<p>Consider, for example, a $25,000 auto loan. With a fair credit score, you may secure an interest rate of 5.3 percent\u2014so you\u2019ll pay a total of $3,513 in interest over five years. With an excellent credit score, your rate could drop to 3.1 percent, and you\u2019ll save nearly $1,500 in interest charges over that same five-year period.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>A good credit score can have a positive impact on your finances, and a bad score can cost you money in interest charges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-10-canceling-old-credit-cards-can-lower-your-score\"><a><\/a>10. Canceling old credit cards can lower your score<\/h2>\n\n\n\n<p>If you have a credit card that you\u2019re no longer using, you may be tempted to close the account entirely. Before doing that, though, consider how it could impact your credit score.<\/p>\n\n\n\n<p>Recall that two credit factors are utilization and length of credit history. Closing an old account could affect one or both of those factors when it comes to calculating your score.<\/p>\n\n\n\n<ul>\n<li>Your <strong>credit utilization <\/strong>could drop after closing an account because your credit limit will likely be lower. Since utilization represents all of your balances divided by your total credit limit, your utilization will go up if your credit limit goes down (and if your balances stay the same).<\/li>\n\n\n\n<li>Your <strong>length of credit history <\/strong>could be lowered if you close an older account that is raising the average age of your credit.<\/li>\n<\/ul>\n\n\n\n<p>Some people worry that having a zero balance on their credit card can negatively impact their score. This is just a credit myth. A zero balance means you aren\u2019t using the card to make any purchases. Keeping the credit card open while not using it actually works to your benefit. You\u2019re able to contribute to the length of your credit history, while not risking the chance of debt and late payments.<\/p>\n\n\n\n<p>You may need to use the card every now and then to avoid having it closed. Additionally, if the card has an annual fee, you may need to close the card or ask to have the card downgraded to a version that does not have a fee. Still, if there\u2019s a way to keep the card open, it\u2019s often good to do so even if you don\u2019t plan to regularly use it.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>An old credit card can benefit your credit score even if you aren\u2019t using it anymore.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-11-you-can-still-get-a-loan-with-bad-credit\"><a><\/a>11. You can still get a loan with bad credit<\/h2>\n\n\n\n<p>It\u2019s true that getting a loan can be more difficult with bad credit, but it\u2019s not impossible. There are <a href=\"https:\/\/www.lexingtonlaw.com\/bad-credit\/loans\">bad credit loans<\/a> specifically for people with lower credit scores. Note, however, that these loans often come with higher interest rates\u2014or they require some sort of collateral that the lender can use to secure the loan. That means if you don\u2019t pay your loan back, the lender will be able to seize the property you put up as collateral.<\/p>\n\n\n\n<p>If you don\u2019t need a loan immediately, you could consider trying to rebuild your credit before applying. There are credit builder loans, which are specifically designed to help you build up a strong payment history and improve your credit in the process. Unlike a traditional loan, you pay for a credit builder loan each month and then receive the sum after your final payment. Since these loans represent no risk to lenders, they\u2019re often willing to extend them to people with poor credit history looking to raise their score.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>You can get a loan even with bad credit\u2014but sometimes it\u2019s wise to find ways to raise your score before applying.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-12-credit-scores-aren-t-the-only-deciding-factor-for-lending-decisions\"><a><\/a>12. Credit scores aren\u2019t the only deciding factor for lending decisions<\/h2>\n\n\n\n<p>While credit scores are important in lending decisions, lenders may take other factors into account when deciding whether to offer you new credit. For example, your income and employment can play a significant role in your approval odds. Additionally, some loans (like auto loans and mortgages) are secured by collateral that the lender can seize if you default. These loans may be considered less risky for the lender in certain cases because the asset can help offset any losses from nonpayment.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"644\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-8.png\" alt=\"Infographic that illustrates factors that impact lending decisions\" class=\"wp-image-17326\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-8.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-8-768x507.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<p>In many cases, your debt-to-income ratio is also an important factor in whether you\u2019re approved for a loan or credit card. Lenders consider your current monthly debt payments (from all sources) as well as your monthly income to determine whether you may be overextended financially.<\/p>\n\n\n\n<p>Two different people may pay $1,500 each month for student loans, a car payment and a mortgage. That said, if one individual makes $3,500 each month and the other makes $8,000 each month, their situations will be considered very differently by a potential lender.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Keeping your credit score high can help you secure credit when you need it, but you\u2019ll want to stay on top of all aspects of your financial health.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-13-your-credit-report-can-help-you-spot-fraud\"><a><\/a>13. Your credit report can help you spot fraud<\/h2>\n\n\n\n<p>Regularly checking your credit report can help you notice fraud or identity theft. If someone is using your information to open accounts, they will show up on your credit report.<\/p>\n\n\n\n<p>If you notice an account that you did not open, you\u2019ll want to start taking steps to <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/life-events\/identity-protection-priority.html\" target=\"_blank\" rel=\"noreferrer noopener\">protect your identity<\/a> from any further damage. You may also want to <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/freeze-vs-lock.html\" target=\"_blank\" rel=\"noreferrer noopener\">freeze or lock your credit<\/a>, which prevents anyone from using your information to open up more accounts.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Reviewing your credit report provides you an opportunity to notice when something is amiss.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-14-joint-accounts-affect-your-credit-scores-but-you-do-not-have-joint-scores\"><a><\/a>14. Joint accounts affect your credit scores, but you do not have joint scores<\/h2>\n\n\n\n<p>If you have a joint account with someone else, that account will be reflected on both of your credit reports. For example, a loan that was opened by you and your spouse will show up for both of you\u2014and will affect both of your credit scores. That said, your credit history, credit report and credit score remain separate. No one\u2014including married couples\u2014has a joint credit report or joint credit score.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"975\" height=\"727\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-9.png\" alt=\"Infographic that illustrates joint account versus authorized users\" class=\"wp-image-17327\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-9.png 975w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2022\/03\/image-9-768x573.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<p>In addition to joint accounts, you may also have authorized users on your credit card, or be an authorized user yourself. Authorized users have access to account funds, but they are not liable for debts. That means that if you make someone an authorized user on your credit card, they can rack up charges, but you\u2019ll be on the hook if they don\u2019t pay.<\/p>\n\n\n\n<p>Because joint account owners and authorized users can influence credit scores in significant ways, we advise you to be careful about who you open accounts with or provide authorization to.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Even though joint account owners and authorized users can influence someone else\u2019s credit, there are no shared credit reports or joint credit scores.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-15-many-credit-reports-contain-inaccurate-credit-information\"><a><\/a>15. Many credit reports contain inaccurate credit information<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.ftc.gov\/news-events\/press-releases\/2013\/02\/ftc-study-five-percent-consumers-had-errors-their-credit-reports\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Trade Commission<\/a> found that one in five people has an error on at least one of their credit reports, and these inaccuracies can greatly impact your credit. (Also see <a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2015\/01\/ftc-issues-follow-study-credit-report-accuracy\" target=\"_blank\" rel=\"noreferrer noopener\">this 2015 follow-up study<\/a> from the FTC for more information regarding credit report errors.) This is why you should frequently check your credit report and dispute any inaccurate information. For example, since payment history accounts for 30 percent of your credit score, one wrong late payment can significantly hurt your score.<\/p>\n\n\n\n<p>It\u2019s important to get your credit facts straight so you understand exactly how different things impact your score. One of the first things you should learn is how to read your credit report so you can quickly spot discrepancies and ensure that the information reported is fair and accurate.<\/p>\n\n\n\n<p>After scrutinizing your credit report, you can look into other ways to&nbsp;<a href=\"https:\/\/www.lexingtonlaw.com\/credit-repair\/fix-credit\" target=\"_blank\" rel=\"noreferrer noopener\">fix your credit<\/a>, like paying late or past-due accounts, so you can help your credit with your newfound knowledge. You can also&nbsp;<a href=\"https:\/\/www.lexingtonlaw.com\/our-services\" target=\"_blank\" rel=\"noreferrer noopener\">take advantage of Lexington Law Firm\u2019s credit repair service<\/a>&nbsp;to get extra help and additional legal knowledge to assist you.<\/p>\n\n\n\n<p><strong>Bottom line: <\/strong>Your credit report could have inaccurate information that\u2019s hurting your score unfairly. Fortunately, there is a credit dispute process that can help you clean up your report and ensure all of the information on it is correct.<\/p>\n\n\n\n<p><a href=\"https:\/\/lexingtonlaw.com\/disclaimer\" target=\"_blank\" aria-label=\"undefined (opens in a new tab)\" rel=\"noreferrer noopener\"><strong><em>Note:<\/em><\/strong><\/a><em> Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How much do you know about credit? Check out these fifteen credit facts that will help you stay on top of your credit in 2024.<\/p>\n","protected":false},"author":63,"featured_media":12740,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v18.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>15 credit facts everyone needs to know in 2024<\/title>\n<meta name=\"description\" content=\"How much do you know about credit? 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