Monday, May 2, 2016

3 Things That Won’t Ding Your Credit Score

Many consumers understand the basic circumstances that can negatively affect a credit score. But there are a few concerns on the list that actually won’t damage your credit. This Bankrate article by Mike Cetera highlights the results of a recent Financial Literacy Survey by Equifax, pointing out some common misperceptions we have about credit.  Full Article

The 2016 Equifax Financial Literacy Survey showed 3 key things consumers think will damage their credit that won’t:

Being denied credit. When you apply for a mortgage or an auto loan and are rejected, that negative mark doesn’t get placed on your credit report, so it won’t damage your credit, as 58% of the survey respondents believed. But FICO says asking for new credit can temporarily damage your score. If you get rejected, your score may fall, but it’s not because you didn’t get the loan; it’s because you tried to get the loan.

The interest rate on your loans. About one-third (30%) of the survey respondents indicated that the interest rate on their loans could hurt their score. Not true. But if your interest rates are so high that you can’t pay your bills on time or you build your balances too high, that could damage your credit.

Checking your credit report. Experts recommend you check your credit report often. It won’t hurt your credit as 30% of respondents believe; in fact it may help. If you find mistakes or unauthorized accounts, report them to the bureaus.


  1. Well-Explain Well-Thinking and brilliant twist in message on how to think about free credit report topic! Awesome post, Leslie!..>

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