Your income in not a factor in the calculation of your score

You credit report tells lenders how well you manage the money you’ve borrowed, which means your income holds no weight on your credit score. However, If you want to apply for a home, auto or large personal loan will often use a combination of your credit score and your income to ensure you can afford to pay back the loan. So, while your income holds no weight in the calculation of your credit score, it can still play a major role in borrowing large sums of money.

You may not have a credit history

If you’ve never applied for a credit card or used credit of any kind, you won’t have a credit history. While you might think this is good, this can actually work against you. When and if you apply for credit of any kind it can be more difficult to get an approval to borrow money because there is no frame of reference for your repayment ability. No credit history can be worse than a poor credit history.

Your credit score can affect more than just your ability to secure financing

If you have a low credit score you might be saddled with higher insurance rates, and could even be told you’re not able to rent an apartment or get a job. Employers could use your credit history to be considered for a job. The good news is, you can work with a credit repair company to help get inaccurate, misleading, and outdated information off your report forever. The occupations that most often pull credit reports are 1) parking booth operator 2) the military 3) accounting 4) mortgage loan officers 5) TSA officers.

Your credit history could be inaccurate

40 million people in the US have material errors on their credit reports, and you could be one of them. It’s important to check your credit history once a year. If you see any mistakes they can be disputed by you, or you can work with a credit repair company to dispute them for you.

A bankruptcy or foreclosure isn’t the end of the world

Negative marks do not remain on your report forever, and you can always improve your score. Learning healthy financial habits can help you start repairing your credit score and keep it healthy long term.

Pulling your credit report does not hurt your credit

This depends. If you check your credit through a free credit repair site, you get what’s called a soft pull on your credit score. The information you get does not lower your score. When you’re applying for new credit your score can go down because you’re doing a hard pull, meaning you want to borrow money.

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