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4 Things That, Believe It or Not, Will Not Affect Your Credit Score

From late payments to the amount you owe, there are a host of things that will affect your credit score. Likewise, there are a host of things that, despite popular belief, have absolutely no effect whatsoever on your credit score. We’ll take a look at some of those in this issue.

  1. Pulling a Copy of Your Credit Report This may be the biggest misconception out there. It’s important to note that there are two types of credit checks: soft and hard inquiries.

The soft inquiries usually come in the form of a background check from an employer or getting a pre-approved credit offer or checking. These are what’s known as surface-scratching reviews, and they have absolutely no impact on your credit score. The hard inquiries, like applying for a loan or a credit card, actually will ding your credit score in the short term.

  1. Your Age Among the things that have relative importance in calculating your credit score, age is not one of them. While being younger means you most likely have a shorter credit history than someone in their 60s and 70s, as long as you’re making payments on time and are using less than 30% of the credit that’s available, you’ll most likely be able to enjoy a good credit score no matter how old you are.
  2. How Much You Make Simply put, your credit score is an indicator of your ability to repay your debts on time. Having a high income doesn’t necessarily equate to being able to make payments on time. As such, your income has absolutely no effect on your credit score.
  3. Missed Insurance Payments While an insurance company may pull your credit report in an effort to decide whether or not offer you coverage and what to charge, they typically will not send an uncollected bill to a collection agency. Most of them find it easier to just drop your coverage. If they did report a missed payment, that would of course affect your score.

Get Disciplined With Your Money; Call The Oswalt Law Group

Getting out of debt takes a bit of work and discipline. We know this can be difficult and are happy to provide help. If you’re tired of dealing with crippling debt, call us here at The Oswalt Law Group for a free consultation. Our number is 602-225-2222

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