You probably know that your credit rating can affect your life in many ways, from the apartment you rent to the interest rate on your car loan. But the…
You probably know that your credit score could affect your life by many ways – the apartment you rent at the interest rate on your car loan.
But there are a few credit score myths that you – or your friends or family – might not know are wrong. For example, marrying someone with bad credit won’t lower your own score.
1. Myth: Checking your score always lowers it
Asking your score – or getting pre-approved for a loan, mortgage, or credit card – won’t automatically lower it. However, applying for credit, which requires careful investigation, could lower it by a few points. Likewise, questions from lenders about your score can have a temporary negative impact.
You can also be proactive and regularly check your credit score. You should do this at least once a year, especially since the law allows you to request a free annual credit report from the three major credit bureaus every 12 months. It’s a good habit that could help you identify potential mistakes or identity theft.
2. Myth: marrying someone with bad credit could hurt your score
Like many people these days, you may have used great credit as a factor in deciding who to date you with in the past. Now you are associating with someone with a low credit score, but don’t worry – your partner’s score won’t hurt you. You will each have your own unique credit history and scores, and lenders won’t turn you down for a loan because of your spouse’s credit. Of course, his credit could affect your finances in other ways; for example, if you jointly apply for a loan or mortgage under both of your names.
3. Myth: A Better Paid Job Will Improve Your Credit Score
Have you landed a job with the company of your dreams? It can be great for your career, but a new title and higher income won’t directly affect your credit score. Losing a job also doesn’t impact your score. However, lenders may be reluctant to give you a loan if you have a work history that includes leaving your job after just a few months.