Common Myths About Your Credit Score

1. Checking Your Credit Report Hurts Your Score Everytime

As a credit card user you may hear the invalid statement that checking your credit reports hurts your credit score and that you shouldn’t ever check. How are you supposed to know whether you are in a position to purchase a home, or get a small business loan? The key is to find a reliable company like Sprout FInancial that does the work while not harming your credit score.

Checking your credit, either by yourself or with a potential lender, is called a credit inquiry. However, when checking your fundability with Sprout FInancial, your credit score is not at all affected. 

Some inquiries can hurt a score. These are called “hard” inquiries and are commonly acquired while doing background checks and credit approvals. Hard inquiries can deduct points from your overall credit score and will remain on your credit reports. At Sprout Financial, we do all the heavy lifting to remove the inquiries which in turn raises your credit score.

You should check your credit reports several times a year. Look for errors and work to fix any that you find. If you are in need of removals, Sprout Financial is here and ready to help your credit score be good as new! 

2. Your income affects your credit score 

It doesn’t matter whether you earn $10,000 or $100,000 a year, as long as you’re making your accrued payments on time. Having a low income does not = having bad credit. 

A great way to keep your score high is to use your card only for purchases that you know you are able to pay off right away. 

3. There is only one credit score There isn’t just one formula that applies to all people in all situations. There are hundreds of scoring tactics in use in the credit marketplace today. A consumer could therefore have several different credit scores all meaning something different. Applicants most likely to get good news from lenders are those keeping all scores high and all cards paid off! It is hard to manage this on your own, so with the help of Sprout Financial, you will be likely to receive the best rates and most beneficial terms on credit accounts.