Baby Boomer Lifeboat   

    Tips for Comfortably Retiring on a Tight Income

Baby Boomers can still retire, even on a tight income, by taking steps to stretch their dollars! 

Tips, ideas and advice for making Baby Boomer retirement income go further!


       Home     About Us    Advertise Here    Articles   Home Biz   Unique Boomer Gifts    Contact Us    Free Classified Ads    News    Press

Click here to go to Baby Boomer Lifeboat Home page. Use menu below to learn about alternatives available to Baby Boomers seeking to retire on a limited or fixed income.

Reduce Automobile Costs

Helpful Books

FREE Classified Ads

Affordable Dental Insurance

Dating & Entertainment

Cut Your Food Bills

Boomer Beauty, Fitness & Aging

Boomer Health

Shopping Health Insurance

Start a Home-Based Business

Cut Household Expenses

Low-Cost Housing

Life Insurance Strategy

MLM Opportunities

Baby Boomer News

Parental Care Issues

Relocate to a Lower

Cost of Living Area

Baby Boomer Resources

Retire Abroad

Managing your

Retirement Savings

Social Security

and Baby Boomers

Inexpensive Travel

Upside-Down Mortgage?

VA Benefits

Vision Care on a Budget


Work Part-Time


Articles for Baby Boomers

Eight Credit Score Myths Debunked

by Tom Quinn

I have received thousands of questions and comments about credit scores in my 20+ years of working in the credit scoring business—and I realize there are a lot of misconceptions about credit scores and lending practices. Here are several common credit score myths that I see repeatedly surface.

Myth #1: Every inquiry for credit costs 5 points.


There is no fixed set number of points that an inquiry will cost. Generally speaking, inquires have a relatively minor contribution to the overall score.


18 Years Experience Tells Us...

Myth #2: Part of my credit score is calculated based on where I live.

Credit score calculations do not factor in where you live (city or zip code, for example). Effectively managing your credit, on the other hand, will result in a higher score—regardless of whether you live in Beverly Hills, Calif. or Zanesville, Ohio.

Myth #3: A bankruptcy will haunt my score forever.


While most negative information must be removed from your credit report after seven years, the Fair Credit Reporting Act allows bankruptcy to be listed on your credit report for up to ten years. It’s true a bankruptcy will negatively affect your score, though the impact on your score lessens over time as the bankruptcy ages.

Myth #4: A short sale has less of an impact on a score than a foreclosure.


The presence of either a foreclosure or short sale information on a credit bureau report is considered negative by credit scores, as it is predictive of future credit risk. Generally speaking, both will have a similar impact on a score.

Myth #5: Making a lot of money results in a higher score.


Your income does not have a direct impact on credit bureau scores, as your income information is not recorded on your credit report. The score focuses on how you manage your credit—not on how you could manage your credit given your income.


  	 Think You Can't Afford Quality Health Insuranc

Myth #6: Going to a credit counseling agency will hurt my score.


Not true. An indication that you are working with a professional credit counselor will not, in and of itself, hurt the score. However, negotiated settlements on balances owed with your creditors may affect your score if the lender reports it as such.

Myth #7: Carrying smaller balances on several credit cards is better than having a large balance on just one card.


Not always. A credit score will often consider the number of accounts or credit cards you carry that have a balance, in addition to your overall utilization of available credit. Thus, you may lose points for having a higher number of accounts with balances.

Myth #8: 850 is the perfect score.


While 850 may be the highest FICO score, it is not a “perfect” score. The “perfect score” is what a lender requires to approve you for the credit & credit terms you are seeking.

About the Author’s Consumer Credit Expert, Tom Quinn shares invaluable insight to navigating the often complicated world of credit scoring, credit reporting and credit granting industry practices. Formerly with FICO (Fair Isaac), MDS (now Experian) and Citibank, Tom has more than 20 years of experience in the credit industry and is currently Vice President of Scoring at Nomis Solutions.

Stay informed - Subscribe to the FREE Baby Boomer Lifeboat Newsletter and Receive a FREE eBook:

Subscribe to our FREE email newsletter and receive a FREE ebook, The Ultimate Baby Boomer's Guide.

Subscribe to our Newsletter

Strict Privacy Policy


Recommend this Site

to a Friend!


Visit the Baby Boomer Lifeboat Facebook page for valuable articles and comments.


Baby Boomer lifeboat LinkedIn page


Boomer home-based business advice and ideas.



Bookmark This Site     Forward Site to a Friend     Disclaimer     Privacy Policy    Boomer Links     Sitemap     This Website  

Copyright 2008-2015 by Pacifica Endeavors LLC.  All Rights Reserved.