Debunking Credit Score Myths – Important Things That You Should Know About It
When we say credit score, we are actually referring to a thing that is considered as essentially the license that will allow us to spend or even borrow 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. Therefore, in this article, what we will do is that we will be looking at these myths and determine which among these myths are fake and which among them are true.
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 is fake and false through and through and that is due to the fact that credit score is not used in reference of a fixed grade which ranges from one to ten, that 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. Due to this fact, there is a big possibility of your credit score changing depending on the person who is doing the checking.
The next myth that we will be discussing with you has something to do with you having bad credits as many believe that you will not be granted a loan due to it. if you are worried that this might be true, rest assured that this myth is false, fake and no basis at all. The truth of the matter is that there are now quite a number of lenders and creditors who are willing to take the risks of approving the loans of those credit holders who 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.
No other credit history out there can be as much of a hurdle to you than having bad credit history. Yes, this is basically true since if you do not have any history of borrowing money, lenders or creditors will have a hard time telling how trustworthy you might be.