Understand What Doesn’t Affect Your Credit Score

Thursday, July 12, 2012, 2:00 AM | Leave Comment

It’s important to understand what affects your credit score. It’s equally important to understand what doesn’t affect your credit score. Good credit score will help you get a loan and at a comparably lower interest rate. Higher score will get you lower rates on loans, credit cards, insurance, and mortgages.

The higher your credit score, the better interest rate you will get. Lending institutions will be all over you once they know how good your credit score is.

You won’t have any problem in securing your loan as long as you keep maintaining your high score.

Understanding your credit score

However, in order to better protect your credit rating, you must first understand what affects your score and more importantly for many what doesn’t so that you are able to better protect your financial life against any possible discrimination.

Regardless, it’s very important how you can take steps to improve it. Three major credit bureaus, namely Equifax, Experian, and TransUnion keep tabs on your good, bad and ugly spending habits.

These are the companies who have all consumers hanging by their respective financial threads. The stronger the thread, the higher the score. The reverse is true as well.

Your credit report is your moment of truth and where the rubber meets the road. It tells you how you have spent your financial life – the short history you have lived so far.

There are certain features about you – the God-given properties that stay with you – that are not considered as part of your credit score. Lucky us. Otherwise, very few would have passed the test considering the present demographics of the United States.

Know what should not affect your credit score…

These properties are the old features of your existence and supposedly will NOT affect your credit score. At least that’s what the law says.

[The law only helps the lucky ones. However, your bad luck can prevail any time over your financial life. Keep your fingers crossed.]

  • Your age, race, sex, and marital status
  • Current employment and length of employment
  • Income and education level
  • Previous credit approvals or denials
  • Length of time at your current address and whether you rent or own

In a Nutshell
Make sure you are not discriminated against and you get a fair credit score on the basis of your credit. There are crazy people all over the financial world as we have come to know the last few years.

Know your rights. In case of any adverse occurrences in your financial life due to the above mentioned points, talk to your lawyer immediately.

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