Most people know that keeping a good credit score is vital to their financial standing. After all, this can make all of the difference being approved or denied a loan in the future. Bob Jain and other authorities on finance can agree, which is why it's important to make note of the biggest myths regarding credit scores. Here are just 3 to make note of, as well as information that can help you debunk them in the future.
"Personal information can affect one's credit score." It seems like many people assume that certain personal details, including gender and race, can affect one's credit score. According to companies like Bob Jain Credit, however, this is far from the truth. As a matter of fact, these do not matter in the grand scheme of things, since everyone is on equal footing in this respect. It's simply a matter of how responsible you are with credit.
"Your partner's credit score will apply to you." You shouldn't make the mistake of assuming that if your score is bad, you can make up for it with your partner's. The reason for this, as supported by Bob Jain CS, is that their score applies to them alone. It doesn't matter how long you've been with this individual, either. Whether you're looking to purchase a car, home, or something else entirely, your own score must be accounted for.
"It's okay to close an account." Another myth that's commonly believed about credit scores is that they aren't impacted when accounts are closed. However, depending on your situation, your score might be negatively affected more than anticipated. This is especially true if you have another card that has a high balance on it, which doesn't come across well to banks and other financial institutions. Before you close an account you might not use anymore, consider the potential consequences.
When it comes to credit scores, you can clearly see that there are numerous myths that people still believe about them. This doesn't mean that you have to fall for the same examples of misinformation. In order to prevent this from occurring, you should make it a point to learn as much as you can about credit scores. The more legitimate information you have on hand, the easier it will be to keep your score at a high level.
"Personal information can affect one's credit score." It seems like many people assume that certain personal details, including gender and race, can affect one's credit score. According to companies like Bob Jain Credit, however, this is far from the truth. As a matter of fact, these do not matter in the grand scheme of things, since everyone is on equal footing in this respect. It's simply a matter of how responsible you are with credit.
"Your partner's credit score will apply to you." You shouldn't make the mistake of assuming that if your score is bad, you can make up for it with your partner's. The reason for this, as supported by Bob Jain CS, is that their score applies to them alone. It doesn't matter how long you've been with this individual, either. Whether you're looking to purchase a car, home, or something else entirely, your own score must be accounted for.
"It's okay to close an account." Another myth that's commonly believed about credit scores is that they aren't impacted when accounts are closed. However, depending on your situation, your score might be negatively affected more than anticipated. This is especially true if you have another card that has a high balance on it, which doesn't come across well to banks and other financial institutions. Before you close an account you might not use anymore, consider the potential consequences.
When it comes to credit scores, you can clearly see that there are numerous myths that people still believe about them. This doesn't mean that you have to fall for the same examples of misinformation. In order to prevent this from occurring, you should make it a point to learn as much as you can about credit scores. The more legitimate information you have on hand, the easier it will be to keep your score at a high level.
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