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6 Credit Myths Explained

Whether you’re working on your credit score or ready to apply for your first loan, you’ve probably come across one of these credit myths. Here’s what you really need to know

Verity Hogan
Written by Verity Hogan
Edited on
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1."I only have one credit score"

There’s no such thing as a universal credit score. Each credit reference agency calculates your credit score differently, using different information. Even if you check your own credit score, the number you see might be different from the one a lender sees. Your credit score can even be affected by the type of loan you’re looking for and what day it’s calculated on.

2. "If I check my credit report regularly, it’ll impact my score

Don’t worry; it doesn’t matter how many times you view your credit report, it won’t impact your score. It’s not like when you apply for a form of credit and a lender conducts a soft or hard search. In fact, it’s a good idea to check your report regularly to help you understand how it’s been calculated and take a look at the factors that might be affecting it.

3. "I’ve never borrowed money before so I’ll definitely have a good credit score"

Your credit score is all about risk. If you’ve never borrowed any money, lenders have no idea how risky it could be to lend to you and they have no way of knowing how good you’d be at paying off your debts. Never create more debt than you need but taking steps to demonstrate that you are a reliable borrower could help you start to build a credit profile.

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4. "My partner’s credit score will boost mine now that we live together"

Moving in with someone or getting married won’t suddenly change your credit rating. You and your partner have separate credit scores, and your partner won’t automatically be added to your existing loans or credit cards. Your score will only be associated if you apply for a financial product together, such as a joint mortgage or loan.

5. "I’ll just pay a company to improve my credit score"

No company can remove accurate information from your credit report. A company might be able to help you come up with a plan to pay your debts, but you can take steps to improve your credit score on your own. Fact-checking your credit report, only applying for the credit that you need, and making all your payments on time could all help.

6. "My bad credit score will last forever"

The only way that your credit score will stay the same forever is if you continue making choices that can negatively impact your score, such as missing repayments or taking out a lot of different loans in a short time. Your score can recover over time if you take steps to improve it.

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