Your credit score is a key part of most major financial decisions every American makes. Whether it’s buying your first house or getting your first credit card there is always a reason to try and improve that magic number.
The main problem for most people is they don’t fully understand what your credit score is, how it’s decided, how to improve it or pretty much anything about it. In this article we will go over 10 fun facts that you may not have known about your credit score!
Bad Credit doesn’t last forever
If you have managed to destroy your credit score don’t be too alarmed because you can get your credit back into a healthy margin in a short amount of time. If it’s only one or two problems on your credit report such as a missed payment then make sure you ask your lender for a goodwill adjustment if you’re normally a reliable loaneeit’s likely they’ll agree to erase that payment. After about 7 years (it may seem like a long time but there are other tactics to be using along the way) any problems in your past will start to disappear and you can get back to the best rates.
There’s more than one version of your FICO score
Each major credit bureau (Equifax, Trans Union, and Experian) have their own version of your FICO score. Although they will all be around the same figure there will still be a slight difference from company to company. It’s impossible to say which company lenders will use; if you’re applying for a mortgage all 3 will usually be checked so it might be worth your time to check them all out before trying to get your first house.lik You can get your credit scores at checkyourcreditscore.net. There are many websites like this available.
These factors play no part in deciding your credit score
There are many myths when it comes to how a company decides your credit score. Below there is a list of any factors that people may have believed affected your credit score but in fact, pull no weight In the decision making process.
- Any personal traits such as Race, Sex, relationship status or your age have no kind of affect on your credit score.
- Your wage, which profession you are in and former employers also make no difference to your overall score.
- Where you live
- Your current interest rates on loans
- Participating in financial counseling also changes nothing
- Child support obligations
Instead of burying your head in the sand every time someone brings up their credit you may now be able to help with the situation/educate them on what they can do now. We hope this article has taught you something new and feel free to check out some of our other content if you want to continue learning!