One undeniable fact is that we can’t run away from the state of our credit scores. In fact, credit scores affect every aspect of our lives. It is the difference between getting an attractive interest rate and dealing with an exorbitant interest rate. It determines if we get easily approved for a loan or if we have to contend with one rejection after the other. Whatever the case, one should always consider working on improving the state of their credit rating. In as much as a good credit rating is valuable, it is imperative to note that there exists a number of myths associated with credit rating. This particular post endeavours to debunk some of the most common credit rating myths.
Myth 1: living with someone with debt problems affects your credit score
This is a lie. Living with someone with debt problems or who has bad credit does not in any way affect your credit score. In fact, the kind of people you live with does not in any away impact on your credit score. The same applies if you live in an address that was initially occupied with a bad credit person. The only time another person’s credit rating could affect yours is if you are financially connected to them or own a joint bank account together.
Myth 2: Old debts have no impact
This is not true. The assumption that your old debts don’t matter or have no impact on your credit score is untrue. The reality of the matter is that old debts stay on your credit report for at least 6 years and therefore before the lapse of that period, it would be unwise to think that old debts have no impact on your credit report.
Myth 3: Rebuilding a credit score is an impossibility
This is incorrect. Having a poor credit score is not a permanent thing. It is not like you’ve been condemned to have a poor credit rating for the rest of your life. While you might be having a poor credit history, you can take measures to improve your situation and state of your credit rating in the future. All you need to do is ensure that you pay your bills on time without default and with time your credit score will gradually improve.
Myth 4: Your level of education affects your credit score
Your credit score is not affected by your level of education, your marital status, race or even origin. Any person who tells you that your education level has any bearing on your credit score is without a doubt lying through the teeth!
Myth 5: The level of your credit score does not in any way affect your job prospects
Unfortunately, your credit rating does affect your ability to get a job or even get a lease for an apartment. Nowadays, employers check your credit worthiness as a way of determining how credit worthy you are. Those with a good credit score have a high chance of securing a job compared to those with a poor credit rating.