A credit score is a numerical expression used to evaluate a person’s creditworthiness and is based on credit report. The higher the score, the more financially trustworthy a person can be.
Lenders use credit scores to evaluate the potential risk an individual will have to repay his debts.
If you want to improve your credit score, you have to weed through different information you can use in the process. To avoid mistakes, you have to know what’s true and what’s not.
Here are the common myths about credit score.
Myth #1 — No need to know your credit score unless getting a loan
Financial institutions we’re not the only ones looking at your credit score. Phone companies, utility companies, landlords, and potential employers can check how you pay your bills by requesting for your credit score.
You may have a better chance for the lowest interest rate by having a credit score before you get a loan.
Myth #2 — Good credit score stays good
A good score can be derailed by unpaid bills, so as not having credit at all.
After 5 years (it remains for 7 in case of a clearout), transactions listed in your credit file disappear. Either good or bad behaviour can vanish from your file, which can impact your score.
Myth #3 — Good income = good credit score
By paying your bills on time, you have as good a chance at having a good score as anybody — whether you’re on a higher or lower income. Although, it’s also possible to be on a higher income and still not pay your debts in a timely manner.
Credit Score Myths BUSTED! Click To TweetMyth #4 — No debt = great credit score
Having a blank credit report doesn’t ensure you are a good loan candidate. With your credit score, lenders will want to see your regular and on time repayments to measure how you handle credit.
So , if you have a well-managed small loan, it can help lenders get to know your behaviour.
Myth #5 — No need to check my credit score if I meet my repayments
If you always meet repayments, you might think you don’t need to check your credit file. However, there could be errors and defaults listed without your knowledge.
Changing residence can be a reason for credit providers to lose track of you, hence, not be able to notify you of any outstanding bill.
Check your credit file regularly to alert you of these discrepancies and remedy them right away — rather than finding out later when you apply for credit.
Easy loans in Australia
Do you need access to funds but you have a bad credit score?
Everyone’s fallen on hard times before, which is why Quickle believes in a fair go!
By taking out Quickle easy loans online, you can build up a positive history. It’s a strategy that can work depending on your financial situation.
Obviously, you should only do this if you can truly afford to pay it back at the end of the month or you could make things much worse.
It’s quick and simple. Apply here!
Note: To qualify for any easy loans in Australia, you need proof of employment that is a payroll or any other employment record.
