Finance

Surprising Facts to Learn About Your Credit Score

It is a known fact that having a good credit score can entitle you to several perks and benefits. This is why businesses try their best to maintain a good credit score all the time. When you have a good credit score you can borrow loans easily and also pay less interest on that. A credit report is also important for an individual when it comes to applying for credit cards and borrowing loans. If you wish to check your credit score then you need to take the help of a credit report agency. Speaking of credit report agencies, Reporting Accounts is one of the well-known credit report agency that you can go to.

Facts to Learn

Today, in this article we are going to look into some of the surprising facts about your credit score. If you are a person who is always bothered about your credit score then you should probably go through this write-up once.

1. If you believe that paying your rents and mortgages is going to higher your credit score then you are very wrong about that. That’s because mortgage debt and rent payments are not reported to the credit agencies. To put it in other words, these are the information that is excluded from your credit report.

2. If you are planning to cancel your old credit card then you should know that it can affect your credit score in a negative way. According to some customers, they believe that after taking heavy loans shutting down their credit cards will automatically improve their credit scores. Well, that is not how it rolls. That’s mainly because your score is more dependent on how long you have managed to maintain your credit cards.

3. One important truth about credit scores is that it varies from one credit agency to other. So if you apply for your credit report from two different agencies then chances are that you will get two different credit scores.

4. Even tiny unpaid balances can affect your credit score. This is why it is important to clear off all your unpaid balances on time.

Maintaining a good credit score is not an easy task. You have to look into a lot of things in order to achieve a good credit score. If you are able to manage a good credit score then you are the one who will be benefitted from it.