Common credit score myths

• The average credit score in the US is 714. 
• What are the most common credit score myths? 
• Discover the most common misconceptions about it.

Do you have questions about your credit score? These are the most common credit score myths! According to FICO, in 2022 and 2021 the average score was 714 points. The scores range between 300 and 800 points, depending on factors such as the type of job the interest rates on your loans and, even your cell phone plan.

Your FICO score is the official number used by financial institutions to determine a person’s creditworthiness. With this guide, banks can determine how much credit they will offer you and how much interest they will charge. Find out some of the most common misconceptions about your FICO score.

4. Checking your credit score is bad

Many people have the false belief that checking your credit score will lower it, but this is not the case. Actually, users can check this information for free and on a weekly basis by turning to institutions like Equifax and TransUnion.

These companies began offering free credit reports during the pandemic, as a way to help people avoid fraud. It’s an excellent opportunity to detect irregularities take steps to correct any issues.

3. Annual income affects your credit score

One of the most common credit score myths is that people who earn more have a higher score. This is not necessarily true, as financial institutions use other information to determine credit, which has caused them to give excellent scores to people with lower incomes than others.

Another common myth is that a partner’s salary or financial habits will impact your credit score. Your score is independent of your partner’s so if you are applying for financing on your own, their score won’t affect you.

2. All adults have a credit score

In a survey conducted by Capital One, it was found that more than 40% of adults in the United States believe that a credit score is automatically assigned at age 18. This is false, since the US government has declared that approximately 45 million people do not have the necessary points to enter the system.

That is why it is recommended to apply for some type of credit when you reach adulthood, because, if you handle it well, it will help you generate a credit score so you can qualify for everything from loans to apartment rentals.

1. A low score will make it impossible to get a credit card

One myth about your credit score is that it is necessary if you want a credit card. Actually, there are banks and other institutions that offer options for people with low credit scores and, although they do not include all the benefits that a user with a high score would get, this does not mean that it will be impossible to get a card.

It is important to note that to you need to adopt healthy financial habit to raise your credit score. Avoid accumulating debts with high interest rates that are difficult to pay off.