Are you thinking of getting a loan because of a major purchase like a car or a home? Or are you thinking about getting a small personal loan for an emergency financial need? Whatever your reason is for getting a loan, it is very important that you understand everything about your credit. Not everyone does. So, in this article, we will be debunking the credit myths for people who need money today and the people who might need money tomorrow.
Today, there is a lot of information out there regarding credit scores, however, not all of it is true so do not believe everything you read. One of the most prevalent myths today is that every time you apply for a credit, you lose 5 points off your credit score. The truth is there isn’t a fixed number which will be taken off your score. Your score will only be deducted if you apply for several loans in a very short span of time.
Another wrong belief is that a bankruptcy report will stay on your credit report forever. This is not true. Bankruptcy will only stay on your record for 10 years at most. However, it can still be a devastating blow to your record. So, if you are considering filing for bankruptcy, be sure that you have thought the matter over for more than ten times. For more information on this, you can go to instant-loans.org.
Your credit score will increase if you make more money. This is another wrong belief. Even if you make millions of dollars, your credit score will not increase. Your credit score is not based on how much you earn.
There are people who are afraid of going to the credit counselor for fear that there credit score will get affected. Again, this is another myth. Going to a counselor does not have any effect on your credit score.
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