Debunking Credit Score Myths – Important Things That You Should Know About It
When we say credit score, we are actually referring to a thing that is considered as essentially the license that will allow us to spend or even borrow money. However, the disappointing part of it all is that there are only some of us who have the knowledge and better understanding with regards to the things that make a good credit score and the things that make a bad one. This sort of thing has led to the rise or development of different myths. That is why we will be listing down, in this article, some of the myths that you should know about regarding credit score and then, we will determine which among these myths are true and factual and which among them are fake and false.
“Your credit score is an actual number”, is considered as one of the myths that was developed due to less understanding about what credit score really is. This particular myth is so not true because is the first place, credit sore does not pertain to fixed grade that ranges from one to ten which is what many of us believed in. In fact, when we say credit score, this actually pertains to the information that creditors or lenders will get with regards to our credit which come from different sources and then, they will make their own decision according to the materials that are available for them to use. Due to this fact, there is a big possibility of your credit score changing depending on the person who is doing the checking.
It has been said and even believed by many people out there that if you want to apply for a loan but you have bad credit, there is a big possibility that your loan will be denied. if you are worried that this might be true, rest assured that this myth is false, fake and no basis at all. The truth of the matter is that there are now quite a number of lenders and creditors who are willing to take the risks of approving the loans of those credit holders who have low credit scores. You should never feel disappointed about having a low credit rating since you can still borrow money from a lender or a creditor since there are now certain installment loans that are specifically intended for people like you.
No other credit history out there can be as much of a hurdle to you than having bad credit history. This is certainly true cause without any history or any records of having borrowed money in the past, lender and creditors alike may find it quite hard to decide whether you are trustworthy enough to be allowed to borrow money on or not.