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COMMON MYTHS RELATED TO CREDIT SCORE THAT YOU MUST KNOW

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Whether you like it or not, your credit score plays an important role when you apply for loans or credit cards. If you have a good credit score above 750, then you are more likely to get loans at a better rate of interest. On the other hand, if you have a low score then you might face difficulty in getting early loan approval. So, it is advised that you check credit score free and download your credit report online. Apart from this, you should also better understand the myths that you have related to your own credit score.


Your good credit score is a gateway to secure loans quickly. A credit score is a three-digit number that ranges between 300 and 900. The better your score, you are more likely to get loans and credit cards at a lower rate of interest. But there are many myths and misconceptions related to a credit score and you should know about them before applying for a loan or a credit card. Borrowers can download free credit report online and check credit score free to know where they stand and check for errors if any. This is important as it will help you understand as it may impact your credit behavior. Almost all of us know that we have a credit score, but not everyone knows clearly about them and how do they work. Here are some of the common credit score myths which everyone should know about.

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1. Checking your credit hurts your score This is the biggest myth among borrowers that checking your own credit score and report multiple times will hurt their credit score. It is not like if you check your credit score and report, it is counted as a "soft inquiry" and it doesn't impact your score in any way. On the other hand, "hard inquiries" such as applying for a credit or loan may slightly impact your credit score.

2. Each person has just one credit score Each person has different credit scores because there are multiple credit bureaus that calculate your score based on the information, they have about you or reported by the lenders. So, it's not like that a borrower has only one credit score. He/she may have one or two credit score depending upon the information credit agencies have about them.

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3. Getting married will merge your credit scores Getting married has nothing to do with your credit score. Your credit score will not get merged with your spouse. Even after marriage, you both will continue with your individual credit scores and credit histories. Joint accounts will affect both of your credit scores, but individually held accounts will affect only that account holder’s credit score.

4. Closing a credit card will improve your credit score If you close your credit card then you are more likely to hurt your credit score instead of improving it, especially if you close your credit card with a balance. Leaving accounts open, especially if they are in good standing is better for your credit score.

5. You need to check score only if you are applying for a loan Loan seekers should check credit score free and download free credit report periodically throughout the year i.e. one time at a minimum in order to know where they stand on credit. Checking your credit score on a regular basis helps you know and understand that you how well you are managing your credit. www.indialends.com


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Common myths related to credit score that you must know  

Whether you like it or not, your credit score plays an important role when you apply for loans or credit cards. If you have a good credit sc...

Common myths related to credit score that you must know  

Whether you like it or not, your credit score plays an important role when you apply for loans or credit cards. If you have a good credit sc...

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