Credit Score Solutions FAQs
- Does renting or leasing a home affect my credit scores?
- If my spouse had bad credit before we were married, will that affect my credit score?
- What is a credit score?
- Will ordering a credit report hurt my credit?
- How often do credit scores change?
- Does having too many credit cards affect a credit score?
- Does co-signing for a loan affect a credit score?
- Do late payments affect a credit score?
1. Does renting or leasing a home affect credit scores in any way?
A real estate loan that has always been paid on time shows lenders that you have established a strong credit base, and reflects positively on your credit responsibility. The lack of a real estate loan on your credit report does not decrease credit scores; however, it generally means that credit scores are not as high as they could be.
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2. If my spouse had bad credit before we were married, will that affect my credit score?
If you hold a joint credit account, have co-signed a loan or have authorized use of another person's credit, these items could affect a score if they appear on your credit report. It's important that joint account holders or authorized users understand that their credit behavior does affect the other joint account holder or main account holder.
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3. What is a credit score?
A credit score is a complex mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service -- specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher the score, the less risk the person represents.
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4. Will ordering a credit report hurt my credit?
No. Consumers have the right to look at their credit report without it affecting their credit or credit score. When you request your credit report it's called a "consumer pull" and has no affect on your credit. Only when you ask a possible creditor to inquire about your credit can it affect your score. For example, if you go out looking for a new car and you let a dealership request a copy of your credit report. That could affect your credit score because it implies you're looking to open new lines of credit.
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5. How often do credit scores change?
Your credit score is a fluid number that changes as your credit report changes. Therefore, any change to your credit report could impact your score. However, most credit scores do not change more than 30 points in a quarter.
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6. Does having too many credit cards affect a credit score?
Having too many credit cards with either high balances or large amounts of credit available can negatively impact risk scores depending on the overall credit history.
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7. Does co-signing for a loan affect a credit score?
Absolutely. By cosigning, you are accepting full responsibility for the debt if the other person does not pay as agreed. A cosigned account will appear on both your credit history and the other person's. All loans and credit card accounts that appear on your credit report will impact credit scores.
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8. Do late payments affect a credit score?
Paying bills on time is generally the single most important contributor to a good credit score. Being late on any bill, for any length of time, is a possible indication of future non-payment of debt and is almost always viewed negatively by lenders. Any late payments will remain on your credit report for up to seven years.
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