3 credit score myths everyone believes
3 credit score myths everyone believes
It’s no surprise that most consumers have misunderstandings about their credit, especially when it comes to what hurts and helps credit scores. With the average credit score at 661 nationwide, according to CreditKarma.com, a majority of Americans have poor credit and aren’t sure what factors influence those three digits. Your credit score affects everything from qualifying for a credit card to acquiring financing for a mortgage. That’s why it’s important to understand the ins and outs on what those three little numbers mean and how they can impact your life. Here are 3 credit score myths everyone believes.
Myth #1: Checking your credit score doesn’t affect your credit.
Truth: While soft inquiries like a background check to rent a home in Las Vegas do not affect your credit, hard inquiries knock a few points off your credit score. This happens when a financial institution pulls your credit report to assess you for a lending decision like a car loan or a credit card. Thankfully, you can check your own credit score as often as you’d like as it’s considered a soft inquiry and should be done often to make sure there are no reporting errors.
Myth #2: Your credit report doesn’t affect your employment.
Truth: Though potential employers don’t actually look at your credit score, they may choose to pull your credit report with your permission. While not all potential employers do so, some run credit with background checks to look for a history of derogatory marks that could indicate to employers that an applicant has a record of untrustworthiness. Your credit report can also tip off employers to a general lack of accountability and financial maturity, especially if you’re applying for a job that requires a lot of responsibility.
Myth#3: Your FICO score is the only one that matters.
Truth: If you’re applying for a car loan, a Las Vegas rental home, or any other major financing it turns out that your FICO score may not matter to them. That’s because there are actually a handful of credit score models out there for different industries. Each industry may have a different credit model that serves as a risk assessment so the credit score pulled by one credit card company could be different by as much as fifty points from another credit card issuer depending on which credit bureau report they use.
A recent survey found that forty-two percent of Americans would prefer a letter grade associated with a credit score rather than the traditional three-digit number. Regardless of how it’s reported, understanding your credit score and not believing credit score myths are going to keep you from earning an “F” on your credit report. For more credit score tips or if you want to know how your credit can affect renting from a Las Vegas property management company, please contact the Simply Property Management- Paielli Realty, Inc. team today. - Greg
Greg Paielli
Simply Property Management – Paielli Realty, Inc.
www.lasvegaspropertymgmtservices.com
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