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Credit
Score Facts Everyone Should Know.
Your credit score is one of the most important factors in your financial
life; unfortunately there are many misconceptions about credit reports
and scores. (See your free score here) These facts answer the most common questions and shine light
upon the most common myths associated with your credit score and the
credit market.
Fact 1: You have more than one credit score. Actually,
you have 3 credit scores, one from each of the main credit bureaus.
These scores can very as much as by 50 points, so it's vital to know
all three of your scores.
Fact 2: Checking your free annual
credit report will not lower your score. You can check your score
as often as you want, some people actually do it many times a day! This
does not affect your credit as long as you’re not doing it through
a business that makes it look like you are planning on some large purchases,
like a car dealership.
Fact 3: Your age, income and gender do not have any
effect on your credit score. Your score is simply a measure of how good
you are about paying your bills.
Fact 4: A higher salary will not raise your credit
score. This is not factored into your score, however if you use your
new income to pay off debt this could substantially improve your score.
Fact 5: Disputing unfavorable information on your score
does not automatically removes it. This will not help your credit score
unless you actually win the dispute, and credit agencies are very quick
at looking into disputes so filling inaccurate disputes will have no
positive effect.
Fact 6: Shopping around for a loan does not hurt your
credit score. As long as you shop around for the same type of loan in
a 14 day period this does not affect your score. However, credit cards
are not included in this and you should definitely be cautious when
applying for more cards.
Fact 7: Credit card offers don't hurt your score. Credit
card solicitations, even those claiming preapproval don't have an effect
on your score at all. What could have a negative effect is if you have
all of your lines of credit maxed, this will be taken as an indication
of higher risk.
Fact 8: When you get married your scores are not merged.
Apparently the credit agencies don't see marriage as a merger, whoever
credit that is given in the name of both couples will affect both couples
credit scores (obviously).
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