Most people know that keeping a good credit score is vital to their financial standing. After all, this can make all of the difference being approved or denied a loan in the future. Bob Jain and other authorities on finance can agree, which is why it's important to make note of the biggest myths regarding credit scores. Here are just 3 to make note of, as well as information that can help you debunk them in the future.
"Personal information can affect one's credit score." It seems like many people assume that certain personal details, including gender and race, can affect one's credit score. According to companies like Bob Jain Credit, however, this is far from the truth. As a matter of fact, these do not matter in the grand scheme of things, since everyone is on equal footing in this respect. It's simply a matter of how responsible you are with credit.
"The credit score your partner has will benefit you." One of the common misconceptions about credit scores is that they benefit both parties in a relationship. The truth is that the only score that matters, when it comes to your financial endeavors, is your own. The likes of Bob Jain CS will agree, regardless of what you want to do with your money in the future. If you want to take out money for a new home in your name, for instance, only your score will be evaluated.
"You can close your account without penalty." If you think that there's no penalty in closing an account you might not use as much, you'd be mistaken. Keep in mind that credit scores have been known to decrease as a result of accounts being closed. This is especially true when you throw in the possibility of higher balances on cards. By being mindful of the accounts that should stay open, your credit score will be better maintained.
Hopefully this information has given you a better understanding of credit scores in general. With every topic, there is a collection of myths that people still believe. The same can be said about credit scores, so it's important to understand how to maintain and even improve yours. The more that you're willing to learn, in this respect, the easier it'll be for you to keep a substantial score that you can be proud of.
"Personal information can affect one's credit score." It seems like many people assume that certain personal details, including gender and race, can affect one's credit score. According to companies like Bob Jain Credit, however, this is far from the truth. As a matter of fact, these do not matter in the grand scheme of things, since everyone is on equal footing in this respect. It's simply a matter of how responsible you are with credit.
"The credit score your partner has will benefit you." One of the common misconceptions about credit scores is that they benefit both parties in a relationship. The truth is that the only score that matters, when it comes to your financial endeavors, is your own. The likes of Bob Jain CS will agree, regardless of what you want to do with your money in the future. If you want to take out money for a new home in your name, for instance, only your score will be evaluated.
"You can close your account without penalty." If you think that there's no penalty in closing an account you might not use as much, you'd be mistaken. Keep in mind that credit scores have been known to decrease as a result of accounts being closed. This is especially true when you throw in the possibility of higher balances on cards. By being mindful of the accounts that should stay open, your credit score will be better maintained.
Hopefully this information has given you a better understanding of credit scores in general. With every topic, there is a collection of myths that people still believe. The same can be said about credit scores, so it's important to understand how to maintain and even improve yours. The more that you're willing to learn, in this respect, the easier it'll be for you to keep a substantial score that you can be proud of.
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