A
credit score is a number that summarizes an individual’s credit risk. In the
United States, this is most often done as a three-digit number which ranges
from 300 to 850. Higher numbers represent lower risk and vice versa. The two
main companies in charge of generating these scores are Experian and TransUnion.
With the rise in digital financial transactions, it has become more important
than ever for people to protect their personal information, so they don’t run
into any issues with identity theft or fraud related incidents later down the
line. Understanding what your credit score means and how you can improve it
will help you make better decisions when it comes to your finances as well as
land jobs that require background checks or security clearance screenings.
Myth #1: Running My Credit Score Will Actually Lower My Credit
Score
Your
credit score is calculated based on your credit history and the information in
your credit report. If you are running a Credit Score, it will lower your score
by showing that you have taken out a new loan or opened up an account with a
lender. To get more information about how to improve
your credit score which help you for
better financial future.
Myth #2: I Have Only One Credit Score
Many
people are unaware of the fact that they have more than one credit score. It is
important to know which credit score you’re looking at when analysing your
financial situation. Your FICO score, for example, is a number between 300 and
850. The lower your FICO score, the higher your risk in terms of borrowing
money or even renting an apartment will be because lenders may question whether
or not you’ll be able to pay them back on time.
Myth #3: After Getting Married, My Spouse and I Will Share a
Joint Credit Score
After
getting married, spouses often choose to merge their finances and share a joint
credit score. One of the most common questions we hear from consumers is
whether or not they will retain their individual credit scores when merging
with their spouse’s. The answer is that you can keep your individual score if
you want to, but it may be worth considering opting for a combined one instead
– especially if you have been working on building up good credit separately
over time. There are many reasons why couples might want to do this: while both
individuals need excellent credit in order to qualify for certain loans,
mortgages and other financial products, there are also benefits like raising
each other’s limits or lowering interest rates through some lenders which are
only available by combining them into one account.
Read More: https://www.creditrepairease.com/blog/10-credit-score-myths-revealed-here/
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