Debunking Credit Score Myths – Important Things That You Should Know About It
One very important thing that you have to know regarding credit score is the fact that this known for being essentially our license to borrow as well as spend money. However, the disappointing part of it all is that there are only some of us who have the knowledge and better understanding with regards to the things that make a good credit score and the things that make a bad one. And because most of us do not have any understanding about such a matter, this led to the development of many myths. That is why we will be listing down, in this article, some of the myths that you should know about regarding credit score and then, we will determine which among these myths are true and factual and which among them are fake and false.
“Your credit score is an actual number”, is considered as one of the myths that was developed due to less understanding about what credit score really is. This particular myth is so not true because is the first place, credit sore does not pertain to fixed grade that ranges from one to ten which is what many of us believed in. As a matter of fact, when a creditor or a lender is getting our credit score, what they usually do is that they are simply getting information about our credit coming from different sources which, in turn, will lead them to come up with a decision in accordance to the materials that they have on hand. Depending on the person who is doing the checking, the credit score that you have has the possibility of getting changed or changing.
The next myth that we will be discussing with you has something to do with you having bad credits as many believe that you will not be granted a loan due to it. For those of you out there who are concerned about this particular myth, well, you should breath since this is fake and has not basis at all. The truth of the matter is that there are now quite a number of lenders and creditors who are willing to take the risks of approving the loans of those credit holders who have low credit scores. You should never feel disappointed about having a low credit rating since you can still borrow money from a lender or a creditor since there are now certain installment loans that are specifically intended for people like you.
No other credit history out there can be as much of a hurdle to you than having bad credit history. This myth is particularly true since if you do not have any record or any experience of having tried borrowing, creditors and lenders may have a hard time determining whether or not you are trustworthy enough to be borrowed money to.