Five credit score Fallacies
First fallacy. Only one credit score is given to you. The truth is that you have credit score explanation calculated by three bureaus: Experian, TransUnion, and Equifax. They do use the same formula provided by the Fair Isaac Corporation, but each bureau collects its own data and interprets information differently. It is possible to have different scores from these three companies. It is important to make sure that each score is accurate. If applying for a loan, companies may use all three scores, or just one of them. Be sure that the figure is correct.
Second Fallacy. Checking credit report lowers your score. Since when has it become a sin to be organized and to stay on top of things? Checking credit scores is an indication that you are a responsible consumer. This is a point for you and not against you. Called "soft inquiry," it is harmless to review your credit history. When companies check credit history to validate your identity, their action also falls under the soft inquiry category. However, consumers must watch out for hard inquiries, this type could affect credit scores negatively. Hard inquiries are done when financial firms use credit history to determine whether to extend credit or not.
Third Fallacy. Looking for the best loan will hurt your score. credit bureaus understand that you need to compare loan packages in order to pick the perfect one, so that shopping around for car loans and home equity cannot really hurt credit scores. Provided that the string of inquiries is made within a 14 or 30 day window, a number of hard inquiries will not have a negative impact on your credit score.
Fourth Fallacy. Your FICO score is the only gauge for getting credit. It is true that FICO scores are primary factors in determining if you get credit or not, but it is not the only gauge used by companies. They also determine your capability to pay with other factors like bank account statements and income.
Fifth Fallacy. Credit scores get lower once you get married. Tying the knot has nothing to do with credit score. If you have had a credit scoring score when you were single, you bring this with you once married.