In a report about how to deal with rising credit cards rates, TODAY financial editor, Jean Chatzky, suggests viewers visit Quizzle.com to get a totally free credit score, no catches, no trial subscriptions, no credit card required:

Watch the entire video on the Today Show website.

Credit has its fair share of myths, legends and misinformation. Pile on top the proprietary nature of credit scores, the formulas for which are closely guarded secrets, and navigating the credit waters becomes even more confusing.

Time to dispel some common myths about credit reports, credit scores and credit cards:

1. Pulling your credit report will hurt your credit score.

When you pull your credit report for your own educational purposes, it’s considered a “soft inquiry” and will NOT affect your credit score. On the other hand, when a creditor or lender pulls your credit report for the purpose of extending you credit or a loan, it’s a “hard inquiry” and may negatively impact your credit score. (Learn more about credit inquiries.)

2. Your income is factored into your credit score.

Your salary has nothing to do with your credit report and credit score. You may make a solid living, but that doesn’t necessarily mean you have good credit.

3. Closing a credit card account will help your credit score.

When you close a credit card account, you may be affecting your “credit utilization.” Credit utilization is simply how much credit you use (total of all balances) compared to how much credit is available to you (total of all credit limits). When you close an account, you’re lowering the amount of credit that’s available to you, which may increase your credit utilization percentage. A higher credit utilization may negatively impact your credit score, as it suggests to a creditor or lender that you’re a higher risk.

4. There’s only one credit score that all creditors and lenders use to determine your credit-worthiness.

The truth is there are a lot of credit scores out there. And on top of the different credit scores that are available, there are different credit reports on which a credit score can be based.

5. If you pay all your bills on time, there’s no need to check your credit report.

It’s important to check your credit report regularly no matter what your situation to make sure the information on your credit report is accurate. Mistakes are made, inaccurate information is reported and if you’re not on top of it, your credit score may suffer.

Check your credit at least every six months at free websites like Quizzle.com. You’ll get a free credit report and free credit score, plus the ability to dispute inaccuracies easily and online.

6. Paying off a past-due account will remove that item from your credit report.

Negative information – like late payments and collections – can stay on your credit report for up to seven years from the date of the initial missed payment. Some bankruptcies can stay on your credit report for up to 10 years from the date the bankruptcy was filed.

When you pay off an account that was previously past due, your credit report will be updated to reflect that you’re current on the account. And as time goes on, the negative information will have less of an effect on your credit score. However, as the purpose of a credit report is to keep a tally of your credit history and how reliably you’ve managed your credit, that information will stay put for seven years in most cases.

7. Your checking, savings and investment accounts impact your credit score.

Checking, savings and investments do not show up on your credit report unless perhaps you are delinquent with a payment or past due on monies owed.

8. Paying cash for everything and not having any credit card debt will ensure a good credit score.

Never using credit can actually hurt your credit score. Creditors and lenders often consider people with no debt and no credit cards a higher risk than those who have credit cards and have proven that they’re able to manage their debt responsibly.

9. Small debts like library fines, unpaid parking tickets and utility bills don’t affect your credit score.

It’s not uncommon for libraries to turn over even small unpaid debts to collections agencies, which can wind up on your credit report and significantly impact your credit score. And more and more, utility companies are regularly reporting to credit bureaus.

10. Debit cards and pre-paid credit cards can help you build credit.

Because debits cards and pre-paid credit cards are essentially electronic checks and not an extension of credit, they don’t show up on your credit report. If you’re looking to build credit, using a secured or unsecured credit card responsibly is the best way to go.

Photo Credit: http://www.flickr.com/photos/baptistefranchina/ / CC BY-NC-SA 2.0

Could your credit use a little tweaking?

Maybe you’d like to buy a home or refinance your mortgage. Or maybe your beloved jalopy is on its way out and you need to purchase a new car. Or maybe you’ve simply grown sick and tired of paying so much interest on your credit cards.

When your credit is in top shape, you’ll qualify for the best rates and terms, and that can translate to big savings.

The New Credit Improvement Tool at Quizzle.com

Now, it’s easier than ever before to improve, manage and learn about your credit. The newly launched Credit Improvement Tool at Quizzle.com will help you improve your credit over four short months and learn to manage it for the long-term future.

Start with a free glimpse of how much you may potentially improve your credit score with the “Credit Gauge:”

If you like what you see and would like to improve your credit, you can opt to receive a personalized action plan each month for four months with step-by-step instructions on how to improve your credit based on your unique credit and financial situation.

Your action plan will refer specifically to things you can do with accounts on your credit report and with funds that you have available. With the plan, you’ll also receive a new credit report and score each month so you can track your progress. A four-month subscription is just $75.

To find out how you might improve your credit situation, while learning all the right things to do to maintain good credit for the long-term, log into your Quizzle account or create a Quizzle account right now (no Social Security Number required). As we say in Quizzle Town, happy Quizzling!

The Federal Open Market Committee (FOMC) – a bunch of smartypants from the Federal Reserve Board and Federal Reserve Bank – meet eight times a year to talk about money issues, one of them being the federal, or “fed,” funds rate.

The fed funds rate is the rate at which banks lend money to one another and may affect the interest rates on your credit cards, savings and short-term loans like adjustable rate mortgages (ARMs).

Here’s how it works:

Credit Cards If you have a credit card, chances are it’s tied to the prime rate. Prime is simply three percentage points greater than the fed funds rate. So, for example, if the fed funds rate is 1%, then prime rate is 4% (1% + 3% = 4%). A lower fed funds rate means a lower prime rate and a happier credit card holder.

Short-Term Loans The fed funds rate also affects short-term interest rates such as those on adjustable rate mortgages. As is the case with your credit cards, a lower fed funds rate means lower short-term rates and happier homeowners.

Savings So we’re always crossing our fingers for a lower fed funds rate, right? Not quite. The fed funds rate also affects the interest rates on savings accounts, money market accounts and CDs. The lower the fed funds rate, the lower the savings rate, which makes for an unhappy saver since you’re making less on your money.

Long-Term Loans It’s a common misconception that the fed funds rate directly affects long-term interest rates, like what you might pay on a 30-year fixed rate mortgage. Long-term interest rates are actually determined by the people who buy and sell bonds in the bond market everyday. And bond yields are affected by the health of the economy and inflation. So while the fed funds rate may indirectly impact long-term interest rates, it’s not a as strong of a relationship as some might think.

In sum, when the fed funds rate is low, that’s good news for your credit cards and short-term loans, but bad news for your savings.

Check it out: According to Wikipedia, Quizzle.com is the ONLY website that offers both a free credit report AND free credit score, no catches, no trial subscriptions, no credit card required.

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Quizzle is also the ONLY site that doesn’t ask you for your Social Security Number. That’s right, keep that deeply personal 9-digit number to yourself.

So go ahead… Quizzle yourself today to manage your home, money, CREDIT and life – all in one spot. And help us spread the word! Click the “ShareThis” button below to share this post with your social networks.