We all have that one friend, you know the one I’m talking about?
The friend who tells you all these outlandish “facts” about your credit score. You listen to these myths and you think it the back of your head, this can’t be true. But your friend is convincing and now you are confused as to what is a myth and what is a fact.
I got you covered on separating Myths and Facts.
Myth #1 Checking Your Credit Score Will Affect Your Score
You checking your score will not hurt your score, but applying for credit can lower your score a small number of points. Personally checking your score actually shows you are responsible! Creditors like to see you are educated and interested in your credit before going into debt.
Myth #2 A Good Score is The Only Thing That Matters
When it comes to getting credit from a creditor there isn’t a “one size fits all” formula that is used. Or having a “high enough” credit score. Each creditor has its way of doing things, and they are going to look at your ENTIRE credit history. So a late payment 3 years ago may not be a big deal to a credit card company but could be to a mortgage company. This is why it is extremely important to make sure everything on your credit reports is 100% accurate.
Myth #3 Your Income Affects Your Score
Your credit score is made up of only what creditors report. Income is not reported by creditors, just payment history, borrowed amount, and outstanding balance. Income and more financial information are reported in a financial background check, which your credit reports could be a part of.
Your income is not part of your credit reports or factored into your credit scores.
Myth #4 Once You Are Married You Have a Joint Report
There is no such thing as a joint credit report. Joint accounts such as a joint credit card, a mortgage (in both of your names), or all credit accounts in both of your names, can show up on both of your reports, but there is no joint credit report. Each of you will continue to have your credit report, and you need to make sure you manage your report.
Myth #5 Your Credit Report Defines Who You Are
While a lot of decisions we make factor into our credit scores, such as getting a home loan, apply for a credit card, or even getting licensed in certain professions. Your credit report shows a small portion of who you are. It doesn’t define your character, or perhaps show the adversity you have had to overcome or the circumstance you have dealt with.
If your credit reports are not reflecting accurate history, let us work together on getting your reports correct. Also talk face-to-face with creditors you are trying to get credit with. Let them know who you are more so than a report. Let them judge you off more than just your credit history.