You probably know that your credit score could affect your life in many ways — from the apartment you rent to the interest rate on your car loan.
But there are a few credit score myths that you — or your friends or family — may not know aren’t true. For example, marrying someone with bad credit won’t bring your own score down.
Here are the facts.
1. Myth: Checking your score always makes it go down
Requesting your score — or getting preapproved for a loan, mortgage or credit card — won’t automatically lower it. However, applying for credit, which requires a hard inquiry, could lower it by a few points. Similarly, lenders’ queries about your score can have a temporary negative impact.
You can also be proactive and check your credit score on a regular basis. You should do so at least once a year, especially since you’re entitled by law to request a free annual credit report from the three major credit-reporting bureaus every 12 months. It’s a good habit that could help you identify potential mistakes or identity theft.
2. Myth: Marrying someone with bad credit could hurt your score
Like many people these days, you might have used excellent credit as a factor in deciding whom to date in the past. Now you’re getting hitched to someone with a low credit score — but don’t worry: Your mate’s score won’t take a toll on your own. You’ll each have your own credit histories and scores, and credit lenders won’t deny you a loan because of your spouse’s credit. Of course, his or her credit could affect your finances in other ways; for example, if you’re applying together for a loan or a mortgage under both of your names.
3. Myth: A better-paying job will help your credit score
Landed a job at the company of your dreams? It might be great for your career, but a new title and higher income won’t directly affect your credit score. Losing a job doesn’t have an impact on your score, either. However, lenders may be wary of giving you a loan if you have an employment history that includes quitting jobs after just a few months.