In case you are a fan of Tv's "Mythbusters," then chances are you'll already know the truth about a lot of favorite fictions - like how a warmed up Jawbreaker is able to explode while you bite into it, or that a house ceiling fan can't decapitate you, or that the toilet seat of yours is the cleanest surface area in your home. While these're fun myths to debunk, knowing the information of these fictional stories probably won't impact your private finances.
What things can impact your wallet is exactly what you understand - and also equally as importantly, what you don't know - about your credit score. The credit score of yours is a three digit numerical representation of the credit-worthiness of yours, or how likely you are to reliably pay back money you borrow. It can look easy enough, but credit scores are not constantly intuitive. Even if you think you're doing the correct thing financially, you might be really hurting your score.
When it comes to credit, knowledge is power. Allow me to share the actual facts behind 10 frequent credit score fictions:
Fiction: The greater number of money you are making, the better the credit score of yours will fare.
Fact: The income of yours has nothing at all to do with the credit score of yours. It's not reported to the credit bureaus or even listed on the credit report of yours.
Fiction: Once you've paid out a past due debt, it is going to drop off of your credit report.
Fact: Late payments and other Bad credit loans near me information remain on the credit report of yours for seven years from the date of the initial late payment. Bankruptcies generally hang in there for ten years from the bankruptcy filing date. While that black mark might will begin to soil your report, however, its effect on your score will lessen over time.
Fiction: Credit bureaus and those reporting to them don't make mistakes.