• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

Most Common Credit Score Myths

October 19, 2020 Leave a Comment

Share this:

  • Tweet
  • Email

There is a lot of noise out there about what is true and what’s not when it comes to a credit score. Today, we will talk over some misconceptions and tell you where to learn more about everything credit-related.

Most Common Credit Score Myths

Here are the most common credit myths that many people still accept as true.

Your Job Impacts your Credit Score

Where you work and how much money you make has nothing to do with your credit score.

You can be the CEO of a multi-billion-dollar company and still have a creepy credit. Likewise, you could be earning $7 an hour at the grocery store and have a perfect credit score.

So your job or your salary has no connection with your credit score.

However, having a good credit score may help you get approved for your job application since most employers usually check the applicants’ credit reports.

So if you are going to apply for a job, it will probably benefit you to have a good credit report because your employer may decide based on those factors.

All Bills Affect Your Credit Score

Your rent payment, cell phone bill, car insurance, or your utility bills all this stuff will more than likely never affect your credit score.

If you miss a payment by a couple of days, don’t sweat it.

Likewise, if you feel like you have paid all your stuff on time when it comes to those bills, don’t assume that you even have any credit.

But if for whatever reason you are way behind any of this stuff, technically they can report it to a collection agency.

If it ever does get to that severity, that will negatively impact your credit score.

Paying bills on time is a must, as you don’t ever want to get so behind that it goes to a collection agency.

Loan Application Denials Hurt Your Credit Score

Your denial of a loan application has nothing to do with your credit score, just like being approved for a loan doesn’t improve your credit score. Credit approval or denial has nothing to do with your credit score whatsoever.

The only thing you need to know is that applying for any loan or credit card will negatively affect your credit score. That is called a credit inquiry, that will go on your credit report and will lower your credit score.

So the main thing to know just keeps your inquiries low.

Don’t apply for new credit cards every couple of months, don’t apply for a car loan every year, just keep the inquiries low.

Everyone Has Credit, And Everyone Needs Credit 

There are plenty of people who don’t have a credit score and may never have it. If you are going to apply for a loan, you will probably have and need a credit score.

But if you pay cash for everything, you never have to worry about putting a down payment or security deposit.

But remember that having a credit score is not a bad thing.

If you get an apartment and want to avoid putting in security or need a loan with low-interest rates, holding a good credit score may help you out in those situations.

Actually, you don’t necessarily need it, but most people will benefit from having one.

Building Credit is Difficult

You can build credit easily as long as you follow some pretty simple rules.

The rules are like this: try to avoid getting into debt, if you are in debt, make sure to pay your loan on time as agreed.

Lastly, if you use things like lines of credits or credit cards, understand that keeping your balances low compared to their limits will help you build credit.

Fix Your Credit Score Fast

Getting rid of bad credit history is not an easy task as the evidence of credit repayment sticks to your report for a long time, typically for up to seven days.

But in case of bankruptcy, the information stays on your credit report for up to 10 years.

Be sure that none of the credit repair companies can do more than you can do on your own.

The only thing that similar companies can do for you is to establish a plan for debt repayment.

Trust no huckster that promises to erase your bad credit records in exchange for money.

The only way out in a similar situation is to start the credit repair process by yourself or ask a company for a professional favor.

A financial consultancy may also be helpful in getting rid of bad habits and adopting healthier ones.

LIKE THIS POST?
Thank you for subscribing.
Something went wrong.
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« How to apply for Short Term Personal Loan Online during Emergency in India
How to Bank Better Online »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media