10 Urban Legends About the Credit Rating


People who want to take out a loan for any need first do some research before requesting a loan from banks. As a result of these studies, they are in despair because of some wrongly known mistakes about the factors in the credit calculation. Here are 10 urban legends about the correct credit rating.

The Credit Rating Report in the Credit Score is the Only Important Factor to Consider.


Credit rating is one of the important factors to attract credit. However, this is not the only issue that plays an active role in the credit score. Also, if you check the credit report, you also examine the transactions performed on your account.

Your income affects your credit rating


This information is generally correct. However, the important thing here is not to have a high monthly income, but to have a regular income. Regular monthly income means that you pay your credit debt regularly every month. For this reason, banks look at whether your monthly income is regular rather than your income level.

Continuously Checking Your Credit Rating Means Your Credit Score Is Falling.

This information, one of the biggest urban legends, is absolutely false. If the bank customers question their credit ratings, there is no penal sanction. However, if you apply for loans to more than one bank, your credit rating decreases. This is because your demand to withdraw to more than one bank is perceived as a suspicious transaction.

Not using credit also means a good credit score.


This is one of the mistakes known in the knowledge. Not using a loan will not give you a good credit rating. Because when calculating the credit rating, the banks give your credit rating after checking that you have regularly deposited the loan installments you have previously taken. If you have deposited the loan installments you have taken in the past, your credit rating will be higher than that. However, if you have not paid the loan installments irregularly, your credit rating will below. If you have not used any credit before, your credit rating will be taken as a neutral basis.

More Credit Cards Increase Your Credit Score.

The excessive use and frequent use of credit cards greatly affect your credit rating. However, as in many other situations, the importance of this case is not that your credit card is excessive, but that you are paying your payments regularly and in time.

When You Configure Your Loan, Your Negative Payment History Is Deleted.

In case you configure your credit debts, some of your credit debt is deleted. However, deleting your debt does not mean deleting your irregular payment history.

A Bad Credit Score Means Not Using Credit.

A Bad Credit Score Means Not Using Credit.

This information is largely accurate. People who have a bad credit score suffer greatly during the loan phase. However, this does not preclude credit withdrawals. People who have bad credit scores may attract lower loan amounts.

Credit Score Is Only Important For Credit Usage.

This information is largely true. The credit score is generally taken into account in the loan withdrawal request. For this reason, if you constantly raise your credit rating, you can make your credit withdrawal in case of need.

Bank Accounts and Management of Your Investments Affects Credit Score.

Bank Accounts and Management of Your Investments Affects Credit Score.

This is another urban legend in knowledge. Your credit score is proportional to your credit payment history. If your credit payment history is good, your credit score will be high.

Even if there is no mistake in the credit score, there is nothing to do.

This is partly false information. Every person can make a mistake, this is also valid for calculating the credit score. You can request an arrangement for your wrong calculation by contacting your bank.

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