When you’re trying to either fix your credit or work on building your credit it is very easy to get confused about what can and cannot affect your credit score. Your credit score comes in handy for loan applications, credit card applications, buying for a home, and sometimes even applying for a job.
Knowing what does not impact your score could help alleviate some of the work you’re putting into getting your credit score higher. Here are a few things that do not affect your credit score.
- Your income – While your credit report will have information about your place of employment, how much you earn will not show up. No matter how high or low your income is it will not make any changes to your credit score.
- Utility and cell phone payments – Since these companies might pull your credit before you sign up with them you’ll likely think that making late payments will bring your credit score down. These payments do not hurt or help your score though. Just keep in mind that if you fall behind on payments they may go to collections which then will affect your credit score.
- Paying your rent – Again, in some cases your credit might be pulled before you’re approved for housing. This does not mean that making your payments early or late will impact your credit score. If you do miss payments though your landlord could take you to court or the rental company might send the fees to collections causing an impact on your credit report or score.
- Your age, race, gender – In the battle of men vs. women, young vs. old there is no real winner because your credit scores do not take any of this information into consideration.
- Banking habits – You might come across some financial forms that ask questions about how much money you have in your bank, this doesn’t mean lenders are looking into your banking habits. Your overdraft fees, low balances, and transferring of funds from your savings to checking account are also not taken into considered when your credit score is calculated.
- Checking your own credit – While inquiries are shown on your credit report, when you check your own report it will not lower your credit score. When checking your own score though be sure to use a reputable source.
There are several other things that will not harm your credit such as insurance payments, your interest rates on credit cards, and credit counseling. Becoming financially savvy and knowing what does and doesn’t affect your credit score can help you now and in the future. AmOne can also help you get connected with credit repair services or credit counseling services to help you get your credit score up. Contact AmOne for free to learn about the many financial options that might be available for you.