credit score scaleCredit Score Scale Myths

Despite the broad access to information and knowledge in today’s technology driven world, there are many prevailing myths about the credit score scale preventing a great number of people from correctly understanding the basics of something that play a major role in their financial activities.

Exposing yourself to credit score mythologies will only result in a failure to perceive how the credit score scale actually operates and this will have a huge negative impact in your financial life.

Keep reading to find out the real truth vs. the myths regarding your credit score.

Credit Score Scale Myths and Facts Revealed

Myth 1 – If you have managed all your finances in a responsible manner your credit score will automatically look after the rest giving you a perfect financial reputation.

Fact – Contrary to common belief a credit score scale is not an exclusive indicator of your financial health. When it comes to judging your income, asset management and financial savvy there are many other factors that have to be accounted for. The primary purpose of maintaining a responsible credit score is to help your potential lenders in identifying you as a credit worthy person.

Myth 2 – Regular requests to check your credit will disturb your ranking in the credit score scale.

Fact – Making requests for credit reports or checking on your credit score status has no affect on your position on the credit score scale. However, your requests should only be made direct to the authorized credit bureaus. If you had made the request through an unofficial bank contact and consequently pulled out your credit report it will be considered as a ‘Hard’ inquiry which in turn might stick on your score. However, it is vital for you to check your credit score scale position to verify that all the accurate information has been lodged since serious errors might result in you paying much higher interest rates than you should actually pay or even being rejected from a loan application.

Myth 3 – Applying for lower amounts will help to boost your credit position.

Fact – Maintenance of substantial loan limits will help your scores better provided you don’t utilize them to exceed your debt limit.

Myth 4 – Maintaining a credit card balance at all times will help you to achieve good scores.

Fact – To maintain a good credit score you don’t need to remain in debt or pay unnecessary interest. This myth has encouraged many people to maintain unwanted dept and letting them face an erosion of their financial security.

Though there are many other myths associated with the credit score scale, these are some of the most common. If you have been misguided in your information it is now time to dispel them and re-organize your position in the credit score scale to reflect a good score which you actually deserve.