Hey there, credit score enthusiasts! Ever wondered what actions might be secretly dinging your credit score without you even realizing it? Well buckle up because we’re about to debunk some common myths and reveal the truth about what actually doesn’t affect your credit score.
Let’s get real nobody wants a bad credit score lurking in the shadows sabotaging their financial dreams. Whether you’re aiming for a mortgage, a sweet new car, or just want to keep your financial health in tip-top shape, understanding what truly impacts your credit score is crucial.
So let’s dive into the world of credit score mysteries and unveil the surprising truth about what doesn’t actually matter:
Myth Busters: The Truth About What Doesn’t Affect Your Credit Score
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Your Marital Status: Whether you’re happily married, single and ready to mingle, or somewhere in between, your marital status doesn’t play a role in your credit score. You and your spouse, if you have one, will each have your own credit reports and scores, independent of each other’s marital bliss.
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Your Income: While your income isn’t directly factored into your credit score, it can indirectly influence your creditworthiness. Lenders and creditors might consider your income when evaluating your loan applications, especially when assessing your debt-to-income ratio. So, while a high income won’t magically boost your score, a low income might raise some eyebrows with lenders.
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Getting married or divorcing: These significant life events don’t affect your credit score in and of themselves. On the other hand, joint accounts that you and your spouse open will show up on both of your credit reports, and any late payments on those accounts could lower your score. In a similar vein, your credit score may suffer if you continue to have a joint account with your former spouse and they stop making payments.
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Denial of a Credit Application: Getting rejected for a credit card or loan won’t directly harm your credit score. However, the application itself can trigger a hard inquiry, which might temporarily lower your score. So, if you’re on a credit application spree, it’s best to space them out to minimize the impact on your score.
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High Interest Rates: Your credit score is not directly impacted by the interest rates on your loans or credit cards. But persistently missing payments because of exorbitant interest rates will undoubtedly lower your credit score. Remember, payment history is a major factor in determining your creditworthiness.
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Getting Help from a Credit Counselor: If you’re struggling with debt and seek guidance from a credit counselor, rest assured that this won’t negatively impact your credit score. In fact, working with a credit counselor can help you develop a plan to manage your debt responsibly, which can ultimately improve your credit score in the long run.
Bonus Advice: Keep in mind that your credit score is a dynamic representation of your financial conduct. It’s flexible and subject to change over time in response to your actions. Therefore, concentrate on developing good credit habits such as timely bill payment, low credit utilization, and responsible debt management.
Knowing what doesn’t impact your credit score allows you to concentrate on the things that actually do matter. Watch this space for additional credit score advice and strategies to help you reach your full financial potential!
Bills That Don’t Affect Your Credit Score
Just as crucial as understanding what raises your credit score is understanding what lowers it. This will help you avoid becoming a victim of fraud, heeding unsolicited financial advice, and signing agreements with businesses that falsely claim to be able to raise your credit score.
First of all, be aware that a bill can only affect your traditional FICO credit score if the company sending it reports the transaction to one or more of the three national credit bureaus (TransUnion, Equifax, or Experian). In general, the majority of your monthly payments to various service providers won’t be reported to the bureaus.
Common monthly bills that have no direct impact on your credit score:
- Utilities (gas, water, and electric service)
- Insurance payments (auto, renter and homeowner insurance, etc.)
- Bills from medical providers
- Cell phone payments
- Cable, internet, and satellite service
- Memberships to health clubs or gyms
- Childcare service
- Rent*
- Someone else’s bills (a bill only appears on the credit report of the individual who owns the debt or account; it doesn’t matter who pays it)
*Whether or not monthly rent payments affect your credit score is becoming a little more complicated. Paying your property management company on time won’t raise your credit score because rent payments are typically not reported to the credit bureaus. Though there are a few exceptions, it’s a good idea to find out if your landlord reports rent payments to any credit agencies.
You can sign up for a rent-reporting service like Rent Reporters or Rental Kharma if you’re trying to repair or rebuild your credit and would like your timely rent payments to be recorded. These kinds of services operate by creating a new trade line on your credit report that shows the duration of your rental payment history as well as up to two years’ worth of rental payments—both good and bad, so watch out if you’ve had a history of late payments. These services come at a cost, but if you’re having trouble raising your score on other accounts, it might be worthwhile.
How To Fix A BAD Credit Score ASAP
FAQ
Which of the following does not affect your credit score?
What factor does not affect your credit score?
What credit scores don’t affect your credit score?
What are credit scores not influenced by?
Do debit cards affect your credit score?
Debit cards Debit cards do not impact your credit score. Unlike credit cards, which involve borrowing money and making payments on credit, debit cards are linked directly to your checking account and are used to make purchases using the funds you have in your account.
What factors do not affect your credit score?
The following 5 factors do not affect your credit score, according to FICO (of the FICO® Score). Save: This credit card has one of the longest intro 0% interest periods around More: Save while you pay off debt with one of these top-rated balance transfer credit cards 1. Assets
Does checking your credit report affect your credit score?
Checking your own credit report or score won’t affect your credit scores. It’s an example of a soft inquiry—a request for credit info that does not affect credit scores. Experian, TransUnion and Equifax now offer all U.S. consumers free weekly credit reports through AnnualCreditReport.com. How Do Inquiries Impact My Credit Scores?
Does income affect your credit score?
Checking your credit reports regularly is the best way to correct mistakes, catch fraudulent activity and stop an identity thief in his tracks. Changes in income. You may be surprised that your income isn’t included on your credit reports. So, earning less or having a change in your income sources doesn’t affect your credit scores.