Are you believing what is not true? Well, when you comprehend wrong, you end up with false information and you tend to harm your credit health. There are rumors around that disrupt your score. You need to make sure that you clear out all the doubts and then go for the right steps to clear Experian credit score doubts.
- Evaluation of the credit report will damage your credit score: This is not true and if you are believing this, then this is not true. Checking your credit reports does not have any kind of impact or affect your credit scores. On the other hand, when you check your credit score regularly, it is beneficial to stay updated. Regular tracking of credit scores is a must to comprehend your complete financial stability and credit health. This will play an important role especially when you are making big purchases like a car, home, or going for a home renovation.
- Not using your open credit card can impact your credit score: This is subject to a variety of factors which includes whether you have created a balance on the credit card. If it is paid off, then it leads to a decrease of debt to credit ratio which is a good thing towards a good credit score. Using your credit card for small purchases and then repaying the balance in full every month will create a positive payment record and also keep the card active.
- Application of a new credit card will not harm your credit score: A new credit card application will generate a hard inquiry on your credit score report, which will impact the credit score. It is important to note that you should apply for a credit card only when you need it. It is good to have just one credit card for all your small needs. Make sure you are not applying for multiple credit cards.
- Having a small balance on your credit card is a good thing: This can affect you in two ways, firstly, you will have to pay a high rate of interest on the cards and the fee you pay to borrow money. Secondly, If you fail to make monthly repayment, your debt to credit ratio will keep increasing. This will lead to a burden and your credit card loan will become a burden with added interest. Learn How to calculate business loans by using business loan calculator.
Finishing up
It is important to forget all the misconceptions and carefully track the score. Go for an instant credit score check free online with Clix Capital and be updated about your Experian Credit Score.
Must Read: Simple Tips to Improve Your Credit Score