Common Misconceptions About Credit Scores


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    Today, I want to share a few things that, surprisingly, do NOT affect your credit score. As real estate agents, we want to make it easier for you to manage your credit, so that when the time comes to make a big purchase, your finances are in order.

    Surprisingly, your income has absolutely no bearing on your credit score, whether you make $1 or $1 million dollars a year. In line with that, your net worth also has no effect on your credit. If anything, having a lot of assets with loans on them could hurt you.


    Another thing that doesn’t hurt your credit is a college degree, or lack thereof. Also, if you make all your payments on a debit card instead of a credit card, you could be doing yourself a disservice. It’s important to not only have a credit card to build your score, but to use it often. I’m not saying you should go out and build up a lot of debt on it, but using it a few times a month and paying it off at the end of the month will have a positive effect on your credit.

    Checking your credit score will not affect your credit either. A lot of people think it will hurt their credit, but that’s not true. Unless you are applying for a loan, making a credit inquiry will not negatively affect your score.

    I hope you found these tips helpful. If you’re thinking about buying anytime in the future, the sooner you meet with us, the better. We can sit down, look at your credit report, and find out what tweaks we can make to improve your credit score so you can get the best loan possible. Give us a call or shoot us an email at any time – we’re always here to help!

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    Our agents write often to give you the latest insights on owning a home or property in the San Diego area.