Credit scores: Like a Halloween fright night, they can be kind of scary.

We can't easily see them, and we don't always know what's lurking behind them. Perhaps that's why there seem to be so many myths and misperceptions about exactly what's in a credit score.

In a recent national survey by Visa Inc. that asked U.S. consumers what factors negatively affect a credit score, plenty of answers were flat-out wrong.

About 25 percent mistakenly thought that where you live can ding your credit score. Others said – erroneously – that your job, your ethnicity or even your age could affect a credit score.

The findings are "dismaying," said Jason Alderman, Visa's global financial education director. But, he added, they aren't altogether surprising.

"People are uncomfortable talking about money, so they perpetuate misinformation by not discussing it with friends, family or at work," said Alderman. "These (erroneous) ideas pop up … but people don't talk about them, so the myths become solidified."

A credit score is that magical, somewhat mysterious, number that determines so much of your financial life, from what you'll pay on a car loan or mortgage to, in some cases, whether you'll get hired. Typically ranging from a low 300 to a perfect 850, the higher your score the better terms you'll get from lenders and creditors.

Gerri Detweiler, a personal finance expert for Credit.com in San Francisco, says people carry a lot of misinformation about credit scores.

One of the common myths is that getting credit counseling or taking a debt management class is as bad as filing for a Chapter 13 bankruptcy.

"Credit counseling used to be reported in a way that had a negative impact, but it's not true anymore," Detweiler said. And taking a debt management class has never affected your credit, she added.

Another myth: A short sale is better for your credit score than a foreclosure.

"That's not necessarily true. They're both very negative and, depending on how the lender reports them, can have a significant impact on credit scores."

But even the negative factors on a credit score eventually get dropped from your credit history. Things like Chapter 11 bankruptcies, foreclosures, late payments and other hits generally fall off after seven years. And the older a negative citation is, the less impact it'll have on your credit score. As credit score site MyFico.com notes: A 5-year-old debt collection will hurt far less than one that's 5 months old.

Credit scores are based on credit reports, the financial history on you as compiled by the nation's three credit reporting bureaus: Equifax, Experian and Trans Union.

By law, every consumer is entitled to a free, annual credit report from each of the three bureaus. To request your copies, call (877) 322-8228 or go to www.annualcreditreport.com

It's a good way to spot any errors that need correcting and to get a snapshot of how you look to lenders, whether it's for a car, a mortgage or a credit card.

According to Visa's survey, 42 percent of Americans don't regularly take a look at their credit score.

But, said Visa's Alderman, "If you don't know where you are on the map, you can't get to where you need to be."

And why does a credit score matter so much? Money. On a loan, a higher score can save you thousands of dollars. For instance, on a 30-year, fixed-rate mortgage for a $250,000 house, a buyer with a credit score below 640 will pay about $258,700 in interest, according to MyFico.com. The buyer with a credit score of 760 or higher will pay only $170,800 over the life of the loan. That's a difference of $250 a month.

It's a given that the malingering economy makes it difficult to stay credit-healthy. "If you're struggling, it becomes a harder road to a better credit score. But that doesn't mean you should give up," said Alderman.

If you're having a hard time paying bills, call your creditors to let them know. Ask about getting the minimum monthly payment reduced or stretching out the payments.

And here's some comfort to those struggling with poor credit: Under a bill recently signed by Gov. Jerry Brown, employers can no longer run a credit check on you prior to hiring. The only exceptions are for law enforcement and security jobs or those that involve handling more than $10,000 in a workday.

Here are some basics on improving your score:

• Pay your bills on time. It's the quickest, easiest fix. If you're 90 days late on a phone bill, it'll get reported on your credit report.

• Pay down debt. In a struggling economy, that's not always easy, although recent studies show that more consumers are whittling down their debt-to-income ratios. Wherever possible, pay down the credit card with the highest interest rate first.

• Keep low balances. "If you have $50,000 available credit on all your credit cards and you're carrying a $45,000 balance, you're close to maxing out. That makes credit bureaus nervous," said Alderman.

Even if you pay off a credit card balance, keep the card open. Having a number of cards with low balances is usually better than carrying only a few cards that are always charged up near the limits.

In general, it's best to keep your debt-to-available-credit ratio at below 35 percent, say credit experts.

Credit reports are free but you have to purchase a credit score. Generally they cost less than $20 from the three credit bureaus, myFico.com and other credit information websites.

To get a free estimate of your credit score, go to websites like Visa's www.WhatsMyScore.org. You fill out 10 questions about your credit history and get an instant estimated score.

You can also check your credit score savvy at sites like www.CreditScoreQuiz.org. Sponsored by the Consumer Federation of America, it's an interactive quiz that helps explain what's in a credit score.

In today's tight economy, a little knowledge can go a long way.

"People will drive miles to pay a penny less per gallon of gas. We're hoping they'll spend a similar amount of time understanding their credit score," said Alderman.

© Copyright The Sacramento Bee. All rights reserved.

Call The Bee's Claudia Buck, (916) 321-1968

• Read more articles by Claudia Buck