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Debunking Credit Score Myths – Important Things That You Should Know About It

When we say credit score, we are actually referring to a thing that is considered as essentially the license that will allow us to spend or even borrow money. However, the disappointing part of it all is that there are only some of us who have the knowledge and better understanding with regards to the things that make a good credit score and the things that make a bad one. This sort of thing has led to the rise or development of different myths. Therefore, in this article, what we will do is that we will be looking at these myths and determine which among these myths are fake and which among them are true.

“Your credit score is an actual number”, is considered as one of the myths that was developed due to less understanding about what credit score really is. This claim is fake and false because the truth of the matter is that credit score is not a fix grade that ranges from one to ten, which many of us believe. What you need to know about credit score is that this is the information that creditors or lenders will be getting from various sources and these information has something to do with our credits and then, they will come up with a decision that is based on the materials that they have on hand. And because of this, the credit score that you have has the tendency of changing, depending on the one who is doing the checking.

The next myth that we will be discussing with you has something to do with you having bad credits as many believe that you will not be granted a loan due to it. if you are worried that this might be true, rest assured that this myth is false, fake and no basis at all. In fact, there are now lots of creditors and lenders alike who are willing to take risks with credit holders that have low credit scores. You should never feel disappointed about having a low credit rating since you can still borrow money from a lender or a creditor since there are now certain installment loans that are specifically intended for people like you.

Aside from the ones that we have already mentioned, another credit score myth that we have debunked is about not having any credit history that can be as much of a hurdle than having a bad credit history. This myth is particularly true since if you do not have any record or any experience of having tried borrowing, creditors and lenders may have a hard time determining whether or not you are trustworthy enough to be borrowed money to.