Many people are aware of the benefits that can be reaped from a good credit score. Furthermore, when it comes to making large purchases in life or huge investments then getting qualified for a loan becomes quite challenging. Yes credit scores are significant but still, there are various factors that an individual needs to consider like what is required for building good credits, how to keep an eye on your scores, and how to fix any bad credits if any.
Here below are compiled some things that you might be unaware of about credit score. Let’s get started.
1. Closing Credit Cards Leaves Negative Impact on Scores
Having credit cards for many years is a great factor in assessing the credit score. Here, it will obviously put your score down if you block any of the oldest credit accounts. Furthermore, the space available in your credit card showcases the creditworthiness and contributes to boosting the credit score.
2. No Employer Ask for Credit Score
It is a serious myth and assumption of all that employers require the credit score for executing the employee screening and background checks. However, employers sometimes ask for credit reports and people mix the credit score and credit report together. Primarily, both the two terms are different to each other and the credit report is somewhat specifically asked by the employers at the time of screenings.
3. Combination of Healthy Credit Accounts is Vital
Wondering what this is now? For instance, if you possess a mortgage loan, a vehicle loan, a credit card account, and a student loan together then you might have a good credit score. The reason behind this is that the lender becomes assured that you can responsibly pay the money back on time and are responsible with your payments and not with the credit cards itself. However, this does not mean that you must have all of these but having a blend of some of these can be beneficial.
4. All Credit Cards Scores Are Not Similar
There are numerous credit scores available from free to paid ones but it is not worthy until you are not counting on FICO credit score. You will explore plenty of free credit score websites but when it comes to making money decisions, lending money, and more, the FICO score is the one that you must be aware of.
This credit score comes in a paid version but has a variety of benefits to offer that no regular or any free score can proffer you.
Besides all this, you are free to apply for as many loans as you want. Also, you need to confirm that all your general information like name, address, credit profile number, and more are accurate and no fake accounts on your name and CPN number are available. However, you can also contact us at Authorized User Tradelines where we understand the importance of good credit score and implement a wide array of ways to build the credit scores as well as fix the bad ones too.