What’s in a credit score?

Americans may know their number, but many don’t know what it means

This article was published on 09.10.15

These days it seems near impossible to watch television and not see three or four ads for websites that will allow people to check their credit score. It's made clear in those ads that a high score means you get better deals on big purchases. But, here's the thing: While 46 percent of Americans have checked their scores in the past year, many have no real clue about what makes their score high or low, according to a recent poll by Bankrate.com. Some other findings:

• 37 percent believe you must carry a balance on credit cards to build credit (you do not).

• Only 1 in 4 respondents correctly said that closing old cards will hurt their score.

• 54 percent knew that having a short credit history would harm their score.

• 51 percent erroneously believe that having a card with a high balance is good for your score, as long as you pay on time.