Having a good credit score is important for your financial
health, the better your score the more likely you are to being able to get the
most affordable credit. A bad score could stop you getting a good rate or stop you
from getting credit at all.
There are quite a few myths that are floating about, which
we have been debunked with the help of Experian and Equifax, below are our top
five.
5) Credit blacklists
exist
Credit Blacklist doesn’t exist, but this myth remains popular
and continues to add confusion. Lenders base their decisions on a range of
things, which include information from credit reference agencies and the
information you supply.
4) Lots of money means
better credit scores
The amount of money in your bank doesn’t affect your credit
score. What matters is whether you’re making payments on your credit.
3) Your credit score
is affected by living with someone with debt
Living with a friend or a family member who is in debt won’t
harm your credit score rating.
2) Old debts don’t
matter
Credit agreements stay on your file for six years and count
towards your score. After your six years
the credit agreement may not be on your file but a negative mark will remain
indefinitely.
1) A poor credit
score can’t be improved
Credit scores are a history of your borrowing and records
are kept for up to seven years – even when the accounts are closed. The older
the information is the less significant it becomes, meaning after a while your
credit score will improve if you’re better with credit.
At Discount Insurance we promise to offer a
competitive home insurance quote without compromising on cover,
even for those with a history of bankruptcy or CCJ’s. Call 0800 294
4522 to find out how much you can save!
