Credit score myths – there are plenty out there, and you’re not alone when it comes to believing them. And it’s important to know the facts. Why? Because your credit score follows you your whole life.
As part of our Credit Countdown to 2018 series, let’s debunk 3 common credit score myths:
1 – Your credit score will go up if you have a job and get a pay raise
Having a job and the amount of money you make have no impact on your credit score. Your credit score is determined by payment history, public records like bankruptcies and judgments, credit history length, new accounts, credit inquiries, and number of accounts in use.
2 – Checking your credit report will bring down your credit score
If someone like a lender or creditor checks your credit, that is considered a “hard inquiry” and can slightly lower your credit score. If you check your own credit score, this is considered a “soft inquiry” and does not impact your score. In fact, you should check your credit score regularly, and every 12 months, you are entitled to a free copy of your credit report from each of the nationwide credit reporting agencies.
3 – Paying off a negative record will result in an automatic credit score increase
A negative record like a collections account or late payment can stay on your credit report for up to 7 years from when the delinquency occurred, and a bankruptcy can stay on your credit report for up to 10 years. That said, you should continue to make every effort to pay off your negative records – just remember that it will take time for a negative record to be removed from your credit report.
Do your homework, and know what’s a credit fact and what’s a myth. Also, if you are one of the 100 million Americans paying rent, solutions like RentReporters can help you build and improve your credit score by reporting your on time rent payments to TransUnion.
Get ready for 2018 the right way by taking control of your credit today.
For more information on RentReporters, visit here.