22
Dec

What Doesn't Affect Credit Score

We all strive for good credit, but how does one achieve it? It’s not a matter of chance. Your credit score is determined by a number of factors pertaining to your personal financial behaviors.

But that doesn’t mean every detail about your finances influences your credit.

If you’re worried about any of the following factors harming your credit score, rest easy: they have no influence on your credit health.

1.   Checking your own credit

Many people fear that checking their own credit can lower their credit score. As a result they remain in the dark and uninformed about their own credit report and credit score. It’s true that hard inquiries can marginally lower your credit score, but checking your own credit is considered a soft inquiry, and won’t bring your score down. In fact, it’s imperative to keep an eye on your credit report, so that you can make sure all the information is accurate and initiate a credit report dispute if anything isn’t.

2.   Your spouse’s credit score

When it comes to marriage, “What’s mine is yours and what’s yours is mine,” right?

Not necessarily, and luckily, this isn’t the case with your credit score. Everyone’s credit report is unique to them, regardless of marital status. The only caveat is if you co-sign a loan or open joint credit accounts with your spouse, those activities will appear on both your credit reports — and you’ll both be accountable for making payments.

3.   Money in the bank

Your credit has nothing to do with the number that appears on your monthly bank statement. The only accounts that matter are the ones on which you’ve been extended lines of credit (credit cards, loans, etc.) — not your bank accounts. As such, using your debit card also doesn’t impact your credit. When you use a bankcard, you’re using your own money, not money being loaned to you by a creditor.

4.   Your salary

Like your bank accounts, your salary is your personal money and thus doesn’t impact your credit score. So whether you just got laid off or got a promotion, don’t expect to see your credit change for the better or worse.

5.   Late payments — IF you pay within a certain timeframe

If you’re a little late paying a bill, as most of us have been once or twice, it won’t affect your credit score. Unless your payment is 30 days or more past due the late will not be reflected on your credit report. If you pay within that 30-day timeframe, you’ll likely only be charged a late fee. But if you do exceed it, you are risking harm to your credit. In general, it’s better to make consistent, timely payments by the due date.

With all that said, you may be wondering what factors DO impact your credit score. Here are the most important ones:

  • Hard inquiries: These result from applying for new lines of credit, such as loans and new credit cards.
  • Credit history: The length of your credit history, as well as your track record of making payments on time, are major influencers over your credit score.
  • Type of credit: It’s good to have both revolving credit (credit cards) and installment loans (car, home, and / or student loans)—as long as you keep them all in good standing.
  • Credit utilization: Keeping yours below 30% is good for your credit.

Ignoring any of these factors can harm your credit. If your credit has already been damaged due to one of these factors, a credit repair service can help you get back on track and advise you on strategies to improve and maintain credit health.

The important thing to remember is to keep up with the factors that actually impact your credit. None of the others have bearing over your credit. If you’d like to learn more about how the experts at CreditRepair.com can help you get back on track and restore your good credit, contact us today.

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