A rodded by a credit score from a credit reporting agency may sound like a no-brainer, but the truth is, it’s not.
A credit score can give a person a false sense of security, according to a new study.
In fact, the research suggests that, even if the credit score is right, the person may not have much of a chance at getting ahead financially.
Read more: How to improve your credit score and keep your mortgage interest rate low with a free credit score report guide.
“The fact is, you may be given credit scores that give you a false impression of how secure you are, or how much you need to do to improve,” says Dan Rochford, co-author of the research.
“If you’re not careful, it can be very tempting to take credit scores and apply them to the wrong things.”
The research is based on data from the Credit Scorecard, a database used by millions of Americans.
For example, you can see your score on your credit report if you’ve applied for a mortgage, and it will show that you have a credit rating of 740.
If you applied for $300,000 of credit cards, the credit report will show 732.
The research team used that information to test how well a person can use credit scores to help them manage their finances.
“We wanted to see if there were any patterns that might tell us whether people are doing something that’s a little bit more risky or a little less risky than they might think,” said Rochfield.
“And the answer is yes, we did.”
The study found that a credit report can be a powerful tool for getting ahead, but it can also backfire.
“Credit scores may actually backfire,” said the study’s lead author, Chris Stahl, a professor of economics at the University of New Mexico.
“Credit scores can be an asset when used correctly.
But credit scores can also be a tool that backfires.
People who get credit scores from an agency that is misleading may not be able to use them in the right way, or they may actually be doing things that they would not be if they had a good, honest credit score.”
To find out whether you might be doing something risky, the researchers asked people to complete a credit survey.
They found that people who applied for credit cards had a credit history that was significantly more risky than those who did not.
For instance, people who had used credit cards to pay for college were about 4.5 times more likely to get caught up in the mortgage loan fraud scandal.
In addition, people with a high credit score who used credit scores for mortgages were 2.5 to 3 times more prone to getting caught up with the mortgage fraud scandal and were about 2.6 times more susceptible to getting involved in credit card scams.
Stahl said that people can also use credit score to determine whether they need help to pay their bills.
For those who had taken out a loan from a financial institution, for instance, they would be better off paying their bills on time and on time, he said.
But the research also found that there are many other things that a person may be doing that may be problematic.
“What we did find is that people with bad credit scores were more likely than people with good scores to use credit cards for things that might have negative impacts on their financial situation,” said Stahl.
“So that was not surprising to us.
The question is: What should they do?
If they’re using credit cards in a way that is not the best, should they be taking steps to reduce their risk?”
The study did not look at how many people had a bad credit score.
But Stahl said he believes that if the average credit score was 541, it would be about the same number of people who have a bad score as have a good one.
“That would mean about 10,000 people have a negative credit score, and that would be very low,” he said, adding that there is no way to know whether that is a significant number of the population.
“We think that that’s an extremely small percentage of people, and there is a reason for that,” said Dr. Peter M. Hotez, a research professor at the Boston University School of Public Health and lead author of the study.
“It’s really, really hard to get good credit scores without using them.”
The Credit Score Card website offers more information about how to use your credit scores, and is available to sign up for a free online credit report.
If you are looking to boost your credit and get ahead in your career, consider getting a credit card that is rated 740, and getting a mortgage loan that is only 730.
“A credit score of 730 is going to be a good score,” said Hotegus.
“But it’s going to have to be used appropriately.”