12 Things That Don’t Affect Your Credit Score
A credit score is a statistical number that depends on the credit history and helps in determining the creditworthiness of the borrower. Generally these scores are needed to make sure whether a person can pay back loans or not. Higher the credit scores are, the more financially reliable the person is. So, perks of carrying good credit scores are that you can save a lot of money while paying interests. On the other hand, if you have bad credit scores then you will end up paying more in interests.
Not necessarily all financial decisions will have an impact on your credit scores. Take a look at the following points that don’t affect your credit scores at all:
Though your employment history is going to get highlighted in your credit reports but how much you earn is not going to affect your credit scores. Information about your past and present employer will be there in the credit reports. Your present income can be used by the lender to determine your ability to pay back at the time of deciding about loan approval. But your income is not considered while evaluating your credit scores.
Your Financial Holdings-
How much you are holding in your bank account does not affect your credit scores. Credit scores focus on how well you can manage debts. Thus how much money you are having in your current or savings account does not play any role in influencing your credit scores.
Your age related information like birth date, year and month will appear in the credit reports. But this has no impact on your credit scores
Information related to your education will not appear on the credit reports. So, whether you are a graduate or not, from where you did your schooling cannot be found on the credit reports. It is just that some lenders may show interest to find out about your job and education although this cannot be obtained from the credit reports.
Use Of Debit Cards-
Where you are swiping your debit card will not get reported in your credit reports. So, no matter if you are using plastic money for shopping or any other purposes, this is not going to get recorded on your credit reports.
Dependency On Government Benefits-
Your credit report will not reflect whether you are receiving government benefits because of your disability. So, your dependency on government benefits will not affect your credit scores.
Your Marital Status-
Being married to someone does not mean your credit reports will be linked or merged with your partner. It is just that your credit report can have the name of your spouse and not more than this. So, it really does not matter if you are married, single or divorced.
Where You Live-
Your address should be mentioned on your credit report but this has nothing to do with your credit scoring. Address is just used as a piece of information in the credit records.
Checking Your Own Credit-
Don’t worry if you want to check your credit records. You can do this without affecting your credit scores. Checking credit scores from time to time can help in keeping tabs on your credit scores.
Having Some Balance In Credit Cards-
There is no need for you to carry balance in credit cards. Although the amount that you charge to your credit card can affect your credit scores but does not make any difference if you just choose to pay the minimum amount or meet the whole balance by the due date.
Seeking Credit Counseling-
Seeking advice from credit counselor is not a big deal. You can do this if you are facing difficulty in managing your debts. Discussing your problem with a credit counselor will have no impact on your credit records. It is just that this thing can get mentioned in the report.
Paying Utility Bills On Time-
Simply opening a utility account will not affect your credit scores. Moreover, if you pay off utility bills on time then also it would not get highlighted in your credit scores.
Plenty of misconceptions regarding credit scores are floating around the internet. Don’t get confused! Search online and go through this article to get idea about things which don’t have impact on your credit scores. Doing a thorough research before building a perception will be helpful.