In case you're a fan of Tv's "Mythbusters," next you might know the simple truth about a lot of favorite fictions - such as how a warmed Jawbreaker is able to explode while you bite into it, or that a house ceiling fan cannot decapitate you, or that your toilet seat will be the cleanest surface area in your home. While these are fun myths to debunk, knowing the facts of these fictional stories possibly won't affect your private finances.
So what can influence the wallet of yours is exactly what you know - and as importantly, what you don't know - about your credit score. The credit score of yours is a three digit numerical representation of your credit-worthiness, or how likely you're to reliably pay back cash you borrow. It can look easy enough, but credit scores aren't always intuitive. Even when you think you are doing the correct thing financially, you might be really hurting the score of yours.
When it comes to credit, knowledge is power. Allow me to share the true facts behind 10 standard credit score fictions:
Fiction: The greater the money you are making, the greater your credit score will fare.
Fact: The income of yours has practically nothing to do with the credit score of yours. It's not reported to the credit bureaus or even mentioned on your credit report.
Fiction: Once you've paid a past-due debt, it will drop off of the credit report of yours.
Fact: Late payments and other best bad credit loans for debt consolidation; please click the following post, information remain on your credit report for seven years from the date of the initial late payment. Bankruptcies typically refuse to leave for 10 years from the bankruptcy filing date. While that black mark may continue to soil your report, nonetheless, its effect on your score will lessen over time.
Fiction: Credit bureaus and those reporting to them never make mistakes.