What you don't know about credit scores can cost you — big time.
Poor financial literacy can hurt you for years, especially if you don't understand what helps and hurts your creditworthiness, said Heather Battison, vice president, global marketing at TransUnion. But many consumers still believe prevalent myths, according to TransUnion's annual credit literacy survey. The credit reporting company polled 1,000 U.S. adults in June.
Being better informed could make it easier to improve your score. (See infographic below for tips.)
And many consumers could stand to improve. TransUnion estimates the average VantageScore (one of several credit scoring brands) is 645, while another brand, FICO, puts the average at 700. Both scores use a scale of 300 to 850; the higher the number, the better.