Debunking Credit Score Myths – Important Things That You Should Know About It
If there is one important thing that you should know when it comes to credit score, that would be the fact that this particular thing is considered as our essential license to spend and even borrow money. And yet, the truth of the matter is that there are only few of us here who have better understanding when it comes to what makes a good credit card score and what makes a bad one and this is just so sad. And because of this, there has been so many myths arising. 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 claim is fake and false because the truth of the matter is that credit score is not a fix grade that ranges from one to ten, which many of us believe. 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. And because of this, the credit score that you have has the tendency of changing, depending on the one who is doing the checking.
The next myth that we will be discussing with you has something to do with you having bad credits as many believe that you will not be granted a loan due to it. 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. These days, there are now certain installment loans out there that are specifically created for the purpose of serving those who have low credit ratings.
Out of the credit histories out there, there is nothing much of an obstacle to you than having a bad credit history. This myth is particularly true since if you do not have any record or any experience of having tried borrowing, creditors and lenders may have a hard time determining whether or not you are trustworthy enough to be borrowed money to.
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