Credit scores are one of the biggest things American’s care about, but have the most commonly believed myths associated with them. Chances are, if you have had things ding or negatively affect your credit score in the past that we undenounced to you beforehand, you are much more cautious when it comes to doing anything with your credit in the future. Parry Custom Homes, a premier Pittsburgh on your lot builder, shares three common myths that most people think will hurt their credit score but don’t actually hurt your credit score at all.
The first common myth with credit is that being denied credit will hurt your score. If you ask for a mortgage or auto loan and are rejected, that negative mark actually doesn’t get placed on your credit report and wont damage your credit. However, if you are asking for new credit, this can temporarily damage your credit score. If you get rejected, your score may fall but it isn’t because you didn’t get the loan, it is because you tried to get the loan.
Another common myth of things that don’t actually hurt your credit score is that the interest rate on your loans could hurt your credit score. This is another thing that is not true. The only thing that would hurt your credit score when it comes to interest rates and your loans is if your rates are so high that you can’t pay your bills or if your balances become too high.
The last common myth of things that hurt your credit report is that checking your credit will hurt your credit score. This is also false and on the contrary, it is actually good to keep an eye on your credit score over time to make sure there are not mistakes or unauthorized accounts. If there is any of this activity on your credit history, be sure to report to the bureaus.
The next time you hear anyone mention any of these common credit card myths, you can assure them that these items are actually nothing to be worried about when it comes to their credit. It’s best to consult with a professional on what is best and what to avoid, when it comes to your credit and ways to boost or fix your credit if that is needed.
Parry Custom Homes is an established homebuilder in the Pittsburgh area. Call or contact us today for more information.