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. But then again, there also goes the fact that there are only few of us who really do understand what makes a good credit card score and what makes a bad one. And because of this, there has been so many myths arising. In order for you to understand what makes a good credit score and what makes a bad one, we will present to you this article containing all the myths that were developed so that we can determine which among these myths are true and which are fake.
One of the myths that we will be discussing with you through this article is about how your credit score is an actual number. 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. What you need to know about credit score is that this is the information that creditors or lenders will be getting from various sources and these information has something to do with our credits and then, they will come up with a decision that is based on 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.
It has been said and even believed by many people out there that if you want to apply for a loan but you have bad credit, there is a big possibility that your loan will be denied. 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. In fact, there are now lots of creditors and lenders alike who are willing to take risks with credit holders that have low credit scores. These days, there are now certain installment loans out there that are specifically created for the purpose of serving those who have low credit ratings.
Aside from the ones that we have already mentioned, another credit score myth that we have debunked is about not having any credit history that can be as much of a hurdle than having a bad credit history. This is certainly true cause without any history or any records of having borrowed money in the past, lender and creditors alike may find it quite hard to decide whether you are trustworthy enough to be allowed to borrow money on or not.