5 Credit Score Myths You Should Really Know
5 Credit Score Myths You Should Really Know
Posted on May 10, 2022
On our continuing quest to simplify finance and make the world of auto loans easier to understand, our auto loan team have come up with some common myths they hear frequently around Burford credit score.
We took some common misconceptions we hear from customers regularly and have busted them for all to see. We believe an informed customer is a happy customer!
You can check your Burford credit score for free once a year
Sort of true. You can check your credit score once per year, per credit bureau. As Canada has two credit bureaus, TransUnion and Equifax, you can actually check it for free twice per year, one for each bureau.
Some financial products also provide free access to your credit report. Some credit card protection companies or financial products offer this as part of a paid service.
Checking your credit report reduces your credit score
Not true. We have featured this myth before and we’ll continue featuring it until everyone knows the truth. Checking your credit score does not impact it in any way.
A check like this is a soft inquiry. Those do not appear on the credit report that lenders will see. You will be able to see your previous checks and will be able to see other soft inquiries but a lender won’t be able to see them.
Getting a raise should improve my credit score
Getting a raise, getting a promotion at work or even earning more won’t impact your credit score in the slightest. Your credit score is a reflection of how you handle credit, not about how much you earn.
You could be a millionaire and it wouldn’t make the slightest difference to your credit score. The only way earnings make a difference is how much easier it makes managing credit and repaying debt.
Bankruptcy is the end of accessing credit
This was true once but not anymore. Bankruptcy does not stop you accessing credit. It will make credit harder to come by and more expensive but it isn’t the end of the road.
We work with lots of lenders willing to lend with those who have gone through bankruptcy. As long as the process has been completed and everything has been sorted out, you should be able to access credit once more.
Divorce reduces your Burford credit score
Not always true. Your credit score is your own and always will be. However, if you have joint borrowing such as a mortgage, difficulties during divorce can impact your credit score.
If a spouse misses a payment, that missed payment will be noted on both credit scores.
If you continue making payments until everything is settled and pay off everything that needs paying off, nothing should happen. Divorce will only impact your credit score if payments are missed during proceedings and not as a result of the divorce itself.
Do you know of any common auto loan or finance myths you want busted? Leave us a comment and we’ll see what we can do!
When you’re ready for a car lease or loan, get in touch with the Burford auto loan experts at Northway Ford for great deals on auto finance.
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