Credit score myths
Chances are, if you have had things ding or negatively affect your credit score in the past that we undenounced to you beforehand, you are much more cautious when it comes to doing anything with your credit in the future. However, there are many credit myths out there that many people believe to be true. So, what is true and what is not when it comes to things that hurt your credit score? Weston Dean Custom Homes, a premier New Braunfels custom home builder
, shares three common things that people think will hurt their credit score but don’t actually hurt your credit score at all.
One of the first most common myths when it comes to things that hurt your credit score, is that checking your credit will hurt your credit score. This is also false and on the contrary, it is actually good to keep an eye on your credit score over time to make sure there are not mistakes or unauthorized accounts. If there is any of this activity on your credit history, be sure to report to the bureaus.
Another common myth of things that don’t actually hurt your credit score is that the interest rate on your loans could hurt your credit score. This is another thing that is not true. The only thing that would hurt your credit score when it comes to interest rates and your loans is if your rates are so high that you can’t pay your bills or if your balances become too high.
The last common myth of things that hurt your credit report is being denied credit. If you ask for a mortgage or auto loan and are rejected, that negative mark actually doesn’t get placed on your credit report and wont damage your credit. However, if you are asking for new credit, this can temporarily damage your credit score. If you get rejected, your score may fall but it isn’t because you didn’t get the loan, it is because you tried to get the loan.
Now you will know more than most when it comes to the truth against credit myths.
Weston Dean Homes is a San Antonio area custom home builder. For more information call 210-408-9107