Pretty much everyone understands that their credit report is essentially a financial resume.
It includes payment history, outstanding balances, records of judgments and bankruptcies and inquiries. Other personal details such as you current address and employer are also included.
But what factors DON’T matter in calculating your overall credit score? What are the things that you DON’T need to focus on when working on credit report repair?
Many people believe that because they are overextended based on their personal income, that there credit score will be lower. In actuality, you salary and occupation has no impact on your score. So while having maxed out credit cards will certainly lower your credit score, simply owing more than you can afford has no impact. (As long as you pay your bills on time, of course!)
Another thing that people sometimes mistakenly think impacts their score is how much money they have in the bank. In reality, the current state of your bank account is not a factor in determining your credit score. (Although, obviously, this is a factor that can come into play for credit approval.)
As far as inquires go, the only ones that matter are ones that are made when you apply for credit. So when you receive a prescreened credit card offer in the mail, this does not impact your score. Additionally, when you apply for insurance or employment and your credit is checked, this does not hurt your credit score.
It is also important to note that you can check your own credit as often as you like without a negative impact on your overall credit score.
In addition to these examples, Federal Law prevents your score for being impacted by whether you receive public assistance or have ever exercised your rights under the Fair Credit Reporting Act or the Equal Credit Opportunity Act. Also, your marital status, gender, nationality and race to not come into play.
Now that you understand what elements DON’T impact your score, we can move on to understanding what DOES affect your score!
By the way, you should know that you don’t need to hire a credit repair company to work on your credit! You can clean up credit report issues on your own! All it takes is a little knowledge and some time! The knowledge is what we are here for! We can help you understand everything from poor credit home loans to how you can effectively deal with student loan default! Enroll now in Credit Repair College!
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