Popular credit score myths

When it comes to properly understand credit scores and how they are calculated, it’s very important to know what is take into consideration and what isn’t. People tend to speculate whether certain pieces of information whether it’s personal or to do with an account can lead to a credit application being declined. Here are some of the most common credit report myths below:

• Previous occupants of your current address affect your credit rating – FALSE
  You won’t see their names on your credit report unless you share a financial connection with them.
• Past debts don’t matter – FALSE
  Unfortunately, CCJ’s for non-payment of debt, as well as even missing a credit card repayment could remain on your credit file for up to 6 years.
• If you’ve never borrowed or have no debt, you’ll get the best deals – FALSE
  This makes it hard for lenders to determine whether you are a risk to lend to or not, as you have no borrowing history.
• You’re on a credit blacklist – FALSE
  Credit blacklists don’t exist. Also, your credit rating won’t be affected by your race, nationality or ethnic origin.
• Other people such as friends or family living with you may affect your rating – FALSE
  Unless you share a financial connection with the above people, they would have no effect on your personal credit rating.
• Repaying your credit cards in full each month lower your credit score – FALSE
  This will likely have a positive impact on your credit score, as it shows that you are able to manage your money and make the necessary payments on time each month.
• Information or different items on your credit file remain there forever – FALSE
  Your credit report is designed to give potential lenders a recent and accurate picture of how your personal financial situation is at the moment. They aren’t interested in debts that were paid off or missed payments 20 years ago as that has no pertinent relevance.