Your Ideal Mantra for A Good Credit Score

A good credit score is very important to get a mortgage. It is no secret. However, there are a number of misconceptions regarding the main factors affecting your credit rating. Some of them seem to be counterintuitive, as they are related to your capability to pay your utility bills. Whereas, the others appear to be just myths that grew up out of the factors that really affect your credit score. Whether counterintuitive, or misconception, none of these has anything to do with your credit rating. So, don’t get confused.

Good credit score mantra

If you want to maintain or trying your best to improve your score, then the best way to do this is paying your loan payments and bills (credit card) on the scheduled time. Otherwise, you are more likely to invite misfortune to your life. So, do what is more important for maintaining a good credit rather than wasting time worrying about the things that have nothing to do with your credit rating. While reading, you will come to know about some of those factors that actually don’t interfere with your credit, but are supposed to do the same.

Your income is not responsible

Are you surprised? Most of us consider our income as an important parameter that connects with our credit score. However, it is just a mere misconception. Your earning is not related to the same. The organization that is responsible for determining your credit score is more interested in your ability to manage your income than what is your income. Had your income been their prime concern, then what about the people with good financial assets and low credit score? Now, it might have become clearer to you. However, it’s not like that financial assets and income is not considered when it comes to taking loans. They are important, but along with your credit score and not a part of it.

Your job is not, as well

This is more or less similar to the previous factor given above. Whether you are a cook, or a lawyer, rules and regulations for determining credit score is equal for all. This is because, for credit rating agencies, no occupation is more creditworthy than the other. Do, you know even if you are unemployed, it does not directly relate to your credit score? However, its consequential incapability to pay your utility bills can. Those who have lost their work during the recession, can also get to have a perfect credit score, provided they can manage to pay their bills on time, until and unless they are again employed.

Apart from your income and job, there are many other factors that are misunderstood as the determining factor for your credit score.  Marital status, little balance on credit cards, and account closure are some of them. So, now that you know about the main factors affecting your credit score, you should be more concerned about that and not about the unnecessary things. Dear reader, if you be a little conscious in the beginning while taking an installment loan and credit card, then you can easily cope up with the uncertainties related to credit score. So, be responsible and lead a happy and peaceful life.


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