7 Credit Score Myths to Avoid for Healthy Banking

credit score myth
credit score myth

Credit score – it means a lot when it comes to healthy banking transactions. But, you may sometimes find the world of internet filled with misconceptions and myths about credit score. A credit score is nothing except a value that helps bankers determine whether you are reliable enough to bank upon when it comes to offering you the loan or another banking facility such as credit card. But there are misconceptions in the market about credit score that doesn’t enable people to figure out what they can transact from bankers.

If you find yourself trapped into such credit score myths, you must check out the following points to ensure healthy credit score and healthy banking. The following 7 points can help you dispel the seven most popular credit score myths:

Myth 1: You will not Get Different Credit Scores

This is totally wrong as there are different agencies in the world that reports credit scores in different ways. Their credit score reports are on the basis of the client’s financial information which creditors offer them. These creditors might have a tie-up with one agency and not with all of them.

There is also a possibility that your creditor is not updating about your financial information daily or weekly. Thus, there is a possibility that you can get different credit scores as different agencies use the different set of rules and different parameters to check credit history.

Myth 2: Free Credit Score only Once in a Year

This is again a big myth as you can get credit score as many times as you want for free. There are some companies that offer free report once in a year but if you want them that check my credit rating, you can get it for free from many of them.

Myth 3: Only Good Earnings and Stable Job can Boost Your Credit Score

Always remember that your income and job are never considered while calculating your credit score. No matter how popular or rich you are, the incomes are not reported. A good credit report is one that only displays the credit nature and repayment history.

Myth 4: Your Spouse will Have Same Credit Scores

The credit scores can never be the same as it doesn’t share records. If, in case, you take up a credit and get late with the payment, the payments get reflected in your credit report with late payment notification. On the other hand, if the credit is in joint, then the notation for joint payment goes in both the credit reports.

Myth 5: No Effect on Your Credit Score Due To Separation from Your Ex-Partner

When two people, being a couple, take up a debt and promises to repay it together, both of them are liable to pay it back together. But after separation, make sure that you pay the debt together or get it re-qualified in a single name. If you fail to do so, both will be liable for paying off the debt.

Myth 6: Insolvency Can Ruin the Credit Permanently 

It is not true at all.  Though it may leave some negative impact on your credit score, it doesn’t ruin the credit score permanently.

Myth 7: Being Debt-Free can Increase Your Credit Score

It is also one myth. You must make use of credit cards at least or have one; this can only help in generating a good credit score.

If you need a rough idea about your credit score, you can make use of free tools for credit check online. You can also check out some companies offering them for free.

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