A lot of people have misconceptions about the things that actually have an impact on their credit rating. When you understand which things do not affect your credit, you will have a better idea as to what you should focus on. While these things may be important, they won’t have bearing on your credit rating whatsoever. The more of this information you get, the easier it will be to improve your credit so you can get those important loans.
- Checking Your Credit Report
It is always a good idea to check your credit report once in a while to see what exactly is on it. Checking your report won’t impact your rating negatively at all, so you won’t have to worry about that. You should make a point of doing this at least once each year. There could be something on your credit report that shouldn’t be there.
- Income Fluctuation
Changes in the amount of money you make from your job won’t impact your credit, but it could affect your ability to get a loan. If you aren’t making as much as you used to, you might have problems with getting approved. Those who start making more money at their jobs have a better chance of getting the loan they need.
- Your Personal Details
None of your personal information, such as your address, has any bearing whatsoever on your credit. While lenders do use these details to get more information on you when you apply for a loan, they don’t affect your credit in any way. Credit files and records do not list details like marital status, education, religious or race.
- Debt Card Charges
The charges you make with a credit card will never impact your rating at all. This only applies to credit cards. When you use a debit card, you are spending money that you already have as opposed to borrowing on a line of credit. There are no bills that you have to worry about paying each month with a debit card.
- Credit Rejection
If you get denied for a line of credit, you won’t have to worry about it affecting your credit rating in the slightest. Submitting a lot of credit applications within a short period of time can hurt your rating, but the actual result doesn’t matter.
- Small Business Payments
There are some people who also believe that paying small businesses for services like lawn care can damage their credit, but this just isn’t true. As long as the business owner does not turn over any information to a credit agency, nothing bad will happen with your rating. Just make sure that you pay the merchant in full and on time.
- Paying Other People’s Bills
If you are helping someone out by paying their bills, you shouldn’t expect your credit to be affected either way. The other person’s credit can be impacted positively or negatively, depending on if the bills are paid on time. You shouldn’t do this just because you think it will help your credit, because it won’t.
- Comparing Rates
While it is a good idea to spend some time comparing interest rates for a loan you want, it won’t have an effect on your credit rating in any way. You can get all of the quotes you want from lenders online without being concerned about this. None of these inquiries are going to count against your credit at all.
- Change in Marital Status
Those who get married can rest easy knowing that their credit rating will remain unaffected by their marital status. Whether you are getting married or divorced, you won’t see any change in your rating whatsoever. Some people think that this can count against you, but nothing could be further from the truth.
- Putting Another Authorized User on Your Credit Card
If you have decided to put a friend or family member as another authorized user for your credit card, you won’t see a change in your rating. The only way that you could experience a dip in your credit is if the person uses the card and does not pay the bill on time. It is important that you completely trust whoever you choose to add as an authorized user.
What Things do Affect Your Credit?
We just went over ten things that have no affect on a person’s credit, but it’s important to know what does. Not paying your bills on time can take a heavy toll on your overall rating, which is why it’s important to be diligent about this. If you want to take out a loan, make sure you can pay it back first. Bankruptcies, liens and loan defaults can all put a huge black mark on your credit report.