Surprising Things That Don’t Affect Your Credit Score

A lender making an enquiry to get your credit report affects your score. However, making a bank overdraft doesn’t have the same effect. Here is a list of surprising things that don’t affect your credibility in the eyes of the lenders.

Bank overdrafts

Having multiple overdraft transactions doesn’t really work in your favor. However, it doesn’t really affect your credit score. The only thing you need to worry about is paying them off before they are sent for collections. It is vital to protect your finances before a collection agency gets your number.

Your current income

Income details are never listed in a credit report, but the name of your employer could be added. Your lenders may want to know if your income is sufficient in relation to your current debts. However, having a high income is never a guarantee of success. It is the ratio that matters more. A low income with a small credit as compared to total income will always get a better report than a high salary with equally high debt.

Insurance payments

Whether you are early or late for insurance payments would not matter in your rating. Insurance companies generally don’t report whether you have paid your installment on time. If you miss several payments, the company is most likely to cancel your coverage instead of sending a collection agency home. You can also renew these policies whenever you want.

Alimony and child support payments

In most cases, late payments of alimony or child support payments don’t matter to your credit score. However, if you have defaulted on several payments and a collection agency is involved, expect the score to take a serious hit. More than the credit score hurt, your life will be affected as the receiver could sue you and authorities could arrest you as well. Filing bankruptcy wont help either as it will go down as a very negative financial event.

Utility payments

Forgot to pay the bill on time? Don’t worry. Utility payments usually don’t affect your credibility. This doesn’t mean that utility service providers and cell phone service providers don’t check your credit score. They often do. However, they are less likely to provide your payment history to credit information bureaus. Again, the situation remains under control until collections are involved. If you ever face a problem, you can get a short-term advance from These small loans could help you in quickly managing payments for months when your finances are not in good shape.

Rent payments

It is always advisable to pay your rent on time. However, it wouldn’t affect your credibility score. Your property owner will usually not report a failure to pay the rent to the credit agency. However, defaulting on too many payments could lead to eviction. You could be denied another rental agreement or even a credit card because of this event.

Checking your own credit score doesn’t affect your credibility. You can check it as many times as you like. It wouldn’t reflect as an ‘inquiry’ into the document. Always remain aware about the payments that could make or break your report.

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