You must be aware that having a good credit score will help you get loans in a hassle-free manner. You will be able to save huge amount of interest and enjoy a loan at low APR. You will also have to pay a lower premium for your home or auto loan and will be able to impress employers who have a habit of looking at the credit score before hiring.
Here are factors that you need not worry about as they will not affect your credit score.
Reviewing your own credit report
If you check your own credit report, it will result in a soft inquiry and will not damage your credit score. You can view your files as often as you like as it is the best way to correct any mistakes in the report.
A change in income
Your income is not a part of your credit report; hence, earning more or less will not affect your credit score. You can have an exceptional credit score even if you are unemployed. However, if you are unemployed, it will be difficult to pay the bills on time, which could affect your credit score.
Personal information
Your personal information will not have any effect on the credit score. The information is limited to your name, address, social security number, and birth date. No other personal information is a part of your report.
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Making payments through a debit card
Your credit report will only include the credit account; it does not include bank accounts. Hence, when you use a debit card that is linked to your bank, it will not help you build credit.
Credit denial
If your application has been denied, you need not worry. Your credit report will not show the status of your application. However, there will be a hard inquiry on your report.
Paying the bills for someone else
If you are paying the bills for somebody else for their credit account, it will not help your credit score. It will only be reported on the credit file of the person who is liable to pay the amount.
Getting married
Your credit score will not be merged with anyone else, not even with your spouse. If your spouse has a bad credit, it could affect your joint loan application but it cannot affect your own credit file.
Adding a user to your card
When you add an authorized user to your credit card, you allow that person to get a card under his or her name and make charges up to the credit limit. The credit situation of that user will not affect yours in anyway, but it will help them build credit. However, if the user abuses the account and makes a default in the minimum payments, your credit score could come down. Hence, always be cautious about adding an authorized user to your card and consider their ability to repay the outstanding balance in time.
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