7 Factors That Don’t Affect Your Credit Scores

You undoubtedly know that having excellent credit boosts your money like hot air in a balloon. It enables you to borrow at cheap interest rates, saving large sums of money on debts and credit cards.

Furthermore, having good credit can help you in unexpected ways, such as you have to pay lower premiums for auto and home insurance, you can impress potential employers who use credit in their hiring process. Moreover, you can get approved to rent an apartment or home, and paying low or no security deposits for utilities and cell phones.

While it's crucial to boost your credit ratings, it's also important to know what can't help or hinder them, so you don't sweat the minor things. Read on for the nine characteristics that don't affect your credit ratings.

#1: You are Checking Your Credit Reports Frequently

Pulling your credit reports results in a "soft inquiry," which never hurts your credit ratings. So, don't be hesitant about examining your files.

Checking your credit reports periodically is the most excellent approach to looking for errors, identifying fraudulent activity, and stopping an identity thief in his tracks

#2: Changes in Income

You may be shocked that your salary is not mentioned in your credit reports. So, earning less or having a shift in your income sources doesn't affect your credit ratings.

There's no correlation between how much you make and your credit. You may have good credit ratings no matter if you're working, jobless, getting government assistance or living paycheck-to-paycheck.

Of course, losing your work or company revenue might adversely damage your capacity to pay your payments on time, which is a significant element in how your credit ratings are computed.

#3: Your Personal Information

There happens personal information in your credit reports. However, it's restricted to your name, current and past residences, Social Security number, age and public information, such as a registered lien or bankruptcy.

Since your credit files never contain your race, gender, marital status, education level, religion, political party or income, such facts can't be considered in your credit ratings.