When we say credit score, we are actually referring to a thing that is considered as essentially the license that will allow us to spend or even borrow money. And yet, the truth of the matter is that there are only few of us here who have better understanding when it comes to what makes a good credit card score and what makes a bad one and this is just so sad. This sort of thing has led to the rise or development of different myths. Therefore, in this article, what we will do is that we will be looking at these myths and determine which among these myths are fake and which among them are true.
The first myth that we will be introducing to you has something to do with your credit score being an actual number. This is fake and false through and through and that is due to the fact that credit score is not used in reference of a fixed grade which ranges from one to ten, that many of us believed in. In fact, when we say credit score, this actually pertains to the information that creditors or lenders will get with regards to our credit which come from different sources and then, they will make their own decision according to the materials that are available for them to use. And because of this, the credit score that you have has the tendency of changing, depending on the one who is doing the checking.
It has been said and even believed by many people out there that if you want to apply for a loan but you have bad credit, there is a big possibility that your loan will be denied. For those of you out there who are concerned about this particular myth, well, you should breath since this is fake and has not basis at all. As a matter of fact, you can actually say that there are so many creditors or lenders out there who are willing to take the risk with those who have low credit scores. You should never feel disappointed about having a low credit rating since you can still borrow money from a lender or a creditor since there are now certain installment loans that are specifically intended for people like you.
No other credit history out there can be as much of a hurdle to you than having bad credit history. This myth is particularly true since if you do not have any record or any experience of having tried borrowing, creditors and lenders may have a hard time determining whether or not you are trustworthy enough to be borrowed money to.