GREEN BAY, Wis., Aug. 30, 2013 /PRNewswire-iReach/ -- Making a significant financial decision can be made even more difficult when a person has undesirable credit, or worse yet, false information about undesirable credit. It is easy to take the advice of family or friends, but that is also one of the easiest ways to fall victim to common credit myths. Broadway Auto Credit is dedicated to helping Green Bay drivers sort through those myths so they feel more confident about purchasing a car that suits their lifestyle.
One of the most common myths is that credit scores will drop if a person checks his or her own report. The two inquiries people encounter are soft and hard. Hard inquiries are those performed by creditors or lenders, which lowers a person's credit score. When someone checks his or her own score it's considered a soft inquiry, which won't negatively impact it.
A second common myth is that closing old credit accounts will help a person's credit score. Most of the time the opposite is true. Abruptly closing an account may alert a bureau and show financial instability.
Third, paying off old debts cleans up a person's credit report right away. Any time a person misses a payment it shows up on his or her credit report and, in most cases, stays there for seven years. However, paying off debts is highly recommended. All resolved delinquencies will be marked as 'paid' on the report.
Fourth, having a cosigner eliminates a person's financial responsibility. If a person's name is listed on a loan, even with a cosigner, that person is still responsible for any activity on that account. The consequences of financial negligence will be shared by both the loan holder and cosigner.
When applying for an auto loan it is important to be knowledgeable and informed about the process. For more information contact Broadway Auto Credit in Green Bay WI.
Media Contact: Mercedes Mannino, Broadway Auto Credit, (855) 395-2129, email@example.com
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SOURCE Broadway Auto Credit