Without any doubt, having a credit score is essential for the lending process of banks and non-banking institutions. The lending institutions thus check the credit score of the borrower before providing the credit. While having a credit score is essential, it is crucial to demystify all the myths surrounding the credit score.
- It is one of the biggest misconceptions that if they don’t avail any credit, they will have a good credit score. However, having a zero credit history means that the lending institutions may hesitate to provide you with any loans as you don’t have any financial transactions in the past.
- It is a wrong conception that if you keep on searching about the loan products of different lending institutions, then you may appear in their credit history.
- There is nothing like a credit blacklist. If you have a poor credit score today does not mean that you will have the same credit score always. Your credit score keeps on changing as you take any credit.
- If you have already taken multiple loans from multiple institutions, then they may be reluctant to provide you with the credit as you already own a substantial debt. It is thus crucial that you don’t max out your credit cards.
- If you check your credit score, then it is termed as a soft enquiry, and it does not appear on the credit reports or affect your credit score.
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