Let’s sit down and address a few things about credit, shall we? You see, a lot of people are fearful of credit, and they don’t need to be. They see credit as this big evil thing that’s going to slow them down and cause them problems. We don’t think that credit is evil in any way, shape or form. That’s the whole story — credit is there to help you if you want certain things later down the line. If you’re terrified of credit cards, then mortgages must leave you speechless! We’re not going to say that credit is the only way to get a home, but it’s the path that most people take. Unless you’re going to win the lottery, chances are good that you’re going to need to get a mortgage before you can get the home of your dreams.
Now then, what about those myths about credit? Below are a few that we come across that are especially bad.
First and foremost, you should know that not just anyone can affect your credit rating. Just because you had a terrible roommate doesn’t mean that you’re financially linked. As long as you kept your finances separate and didn’t take out joint accounts, everything should still be just fine.
What about your spouse? If you’ve had joint accounts with them, then lenders will determine your creditworthiness based on both of you. Not just one person.
If you’re going to get credit for the first time, you might think that you qualify for the best deals already. This is simply not true at all. The reality is that if you don’t have credit, lenders are going to pass you by unless you go for credit products designed specifically to give you a chance. Keep in mind that you won’t have great interest rates until you’ve proven yourself worthy of them. This means that you must make sure that you’re looking at earning their trust.
Pay them on time and you can continue to build your credit.
You might wonder if you’re hurting yourself by paying off your balances every month. This is a myth that just doesn’t want to die. People think that they’re going to hurt their score by paying off the balance. While it’s true that credit card companies make the most out of interest, but the truth is that it doesn’t hurt your score. If anything, it can only make your credit score go up. You’ll feel better about your balances and you’ll be a lot more likely to make all of the right decisions.
It’s time to get serious about your credit. Don’t think that items have to stay in your credit history forever — they don’t. Creditors want to see the most current information, not the stuff that happened 20 years ago. People change and grow, so take this as a sign that it’s really never too late to build your credit. Good luck!