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3 Credit Score Myths You Should Stop Believing


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You probably know that your credit score could affect your life in many ways - from the apartment you rent to the interest rate on your car loan.

But there are a few credit score myths that you - or your friends or family - may not know aren't true. For example, marrying someone with bad credit won't bring your own score down.

Here are the facts.

1. Myth: Checking your score always makes it go down

Requesting your score - or getting preapproved for a loan, mortgage or credit card - won't automatically lower it. However, applying for credit, which requires a hard inquiry, could lower it by a few points. Similarly, lenders' queries about your score can have a temporary negative impact.

You can also be proactive and check your credit score on a regular basis. You should do so at least once a year, especially since you're entitled by law to request a free annual credit report from the three major credit-reporting bureaus every 12 months. It's a good habit that could help you identify potential mistakes or identity theft.

» MORE: Checking your credit doesn't hurt your scores

2. Myth: Marrying someone with bad credit could hurt your score

Like many people these days, you might have used excellent credit as a factor in deciding whom to date in the past. Now you're getting hitched to someone with a low credit score - but don't worry: Your mate's score won't take a toll on your own. You'll each have your own credit histories and scores, and credit lenders won't deny you a loan because of your spouse's credit. Of course, his or her credit could affect your finances in other ways; for example, if you're applying together for a loan or a mortgage under both of your names.

» MORE: You're married, but your assets don't have to be

3. Myth: A better-paying job will help your credit score

Landed a job at the company of your dreams? It might be great for your career, but a new title and higher income won't directly affect your credit score. Losing a job doesn't have an impact on your score, either. However, lenders may be wary of giving you a loan if you have an employment history that includes quitting jobs after just a few months.

» MORE: How to improve your credit by 100 points in 3 steps

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Valerie Lai is a writer at NerdWallet. Email: vlai@nerdwallet.com.

The article 3 Credit Score Myths You Should Stop Believing originally appeared on NerdWallet.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Personal Finance , Credit Cards



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