As of now, more than ever myths about fico score ratings that are just floating around and most of them are just outdated information. Even lenders can give you the wrong advice, which can get a little confusing. But the truth of the matter is that bad information can cost you money no matter, how you come across it.

Your Fico score ratings are used for most mortgage lending, car loans etc. Which means, you will need to know what will hurt or help your credit score. So to make it clear, here are some of the most common myths about your credit score.

* You can lower your credit score, by checking your credit report.

Remember that you can check your own credit report and credit score, as this counts as a soft inquiry and does not go against your credit rating. But, if anyone else like a lender or credit card company is checking your credit report, this is considered a hard inquiry and will generally knock off about 5 credit score points, which is drastic as every point is important.

A typical credit score rating system treats multiple inquiries in a 14-day period as just one inquiry. The system ignores all inquiries made within 30 days prior to the day the credit score is computed. So if you want to minimize the damage from credit inquiries, try to shop for a loan within that time frame.

* If you close your old accounts, it will improve your credit report score

There are times when even lenders will tell you to close your old and inactive accounts as a way for improving your credit report score. In most cases, closing old accounts will actually have the opposite effect with the current credit score rating system.

If you choose to cancel old credit card accounts it can actually lower your credit score because it makes your credit history appear shorter. If you want to reduce your levels of available credit, it's better to reduce or close new accounts instead. Applying for new credit is more likely to lower your score as well.

* You need to check more than just FICO score rating

If you ever hear this from anyone, consider it a red flag. All of the three major credit reporting bureaus offer FICO credit score ratings using the formula developed by Fair, Isaac. Even though each one gives the scores a different name you only need a fico score rating from the three major credit reporting bureaus.

With the comapny Equifax, the FICO score rating is called the Beacon credit rating. At TransUnion, it's called Empirica. Up at Experian, they call it the Experian/Fair, Isaac Risk Model.

The reason each of the three major credit reporting bureaus will have three different scores is because they don't all share the same data. Whenever checking your credit report, just make sure it comes from the three major credit companies: Experian, Trans Union and Equifax.

Examine your credit reports from all three major credit reporting bureaus before you apply for a big loan like a mortgage. Try to fix any errors in all three reports before you shop for a loan because it takes time to correct your credit score.

* Getting some Credit counseling will hurt your credit score

Current FICO credit score rating systems in place will ignore any reference to credit counseling that may be in your file. The company researchers at Fair, Isaac, the company that created the FICO credit scoring rating system, found that people getting credit counseling didn't default on their debts any more often than the next person.

On the contrary, any late payments you've had with creditors will hurt your credit score. By using a form of credit counseling it can hurt your ability to get a loan because you probably have had trouble paying your debts.

As some lenders will back away if you are in credit counseling. Others may see it differently, but usually will charge you higher interest rates than if you had a perfect credit score.

Best way to improve your credit report score is by paying your bills on time and paying off credit card debt. Check your credit report regularly for any errors and make sure you don't fall for these common credit score myths as they block you enjoy a little financial freedom.