Generally, surveys prove that we do not really know enough about credit scores. There are many myths, many mistaken and wrong beliefs in the topic. We often do not even know that we simply do not know…
Even people with high scores are confused when asked about what have build their good score. The sad truth is that it demands quite a lot of time and effort to make people well informed when we tend to reproduce misinformation.
There is one, really surprising for many of us, truth about credit scores: your income, pay rise or assets do not matter in this case.
You may be a millionaire, but you still may be disallowed to open a new credit card, because of your poor credit score. Around a half of American adults believe that their pay rise has a power to boost their score.
What should we do? Let’s start with providing clear and comprehensible information. If we have already resolved the doubts with a pay rise, now we can show other wrong beliefs which live their own life among misinformed American citizens.
- Which payments can affect credit scores?
According to almost a half of 1,000 people surveyed online it is…rent and cell phone. What is the truth? These usually are not reported to credit bureaus. What is interesting, these were people with very good scores who were the least aware of this fact. People with 550 credit score knew this is not true.
- What information is included in your credit report?
The next confusing matter. Here again almost a half of the surveyed people who have checked their report in the last 30 days, claimed that their full history of employment and income level appear on the credit report. And the truth is that these are not included in the report. Here’s information about average credit score by age.
- Will credit inquiry affect your score?
This is unclear for 40% of people who have never checked their report. And the explanation: consumer inquiries or the “soft” ones will not damage the credit score. Read about credit inquiries removal here.
- Paying off the debts caused by late payments immediately repairs your score.
Such belief is held by 61% of those who have checked their report in the last 30 days. It is partly true, it repairs the score, but not immediately. It takes time.
- The size of your credit account matters.
70% of those who have checked their report in the last year believes in it. What is the truth? These are credit events which count.
We still know little about credit scores. “Come off it! Is it so important to be an expert in the topic?” – you may think. Maybe not necessarily an expert, but it really is worth some time devoted to get informed. This should encourage most of us: good credit score helps you save a lot of money.