Some things that affect your personal finances, such as overall stock market returns or declining real estate values, may be frustratingly beyond your realm of control. There is, however, something that you can control that affects a myriad of personal financial matters: your credit score. You have likely heard that your credit report and its corresponding score are key to your ability to secure financing at attractive rates.

You may have also heard some common misconceptions about credit scores. Separating fact from fiction can help you take charge of your credit score and your financial well-being.

Myth No. 1: I don't plan on buying a house, so my credit score doesn't matter.

Credit scores are not only used to qualify for a loan for typical big-ticket items such as a house or a car. They are also used by credit card companies to determine your terms, by insurance companies to determine your rates, and by potential employers as they determine whether or not to offer you a job. The list continues, with landlords, mobile phones companies and cable TV providers all looking at your credit history.

Myth No. 2: I don't earn enough money to have a good credit score.

Your income does not directly affect your credit score. There are people who earn minimum wage who have a higher credit score than people who earn a CEO's salary. In fact, your income and employment status are not provided on your credit report. Certainly, being unemployed can affect your ability to pay your bills, and late payments will damage your score. Whether you earn a part-time wage or a professional athlete's income, spending consciously within your means and staying organized so that you can pay every bill on time will help your financial well-being.

Myth No. 3: My credit report is probably accurate.

Various studies indicate that a large percentage of credit reports contain errors. Some errors are serious enough to cause you to be denied credit. Check your report for free with each of the three credit bureaus at https://www.annualcreditreport.com. The Federal Trade Commission Web site at http://www.ftc.gov is a trustworthy resource which offers guidance on improving your score and correcting errors.

Your credit report has great influence on many facets of your personal financial life and can affect your bottom line. The good news is that, even in uncertain times, you can take charge and make sure it is working in your favor.

(This month's article was cowritten with Joy Clady, an assistant planner at Financial Service Group who previously worked with U.S. Navy and Marine Corps families as a personal finance manager.)

Justus Morgan is a certified financial planner with Financial Service Group, Inc., a registered investment advisory firm in Racine, on the net http://www.toyourwealth.com.