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Conns credit-score-guide-r1


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To help make understanding your credit score easy, we've complied a list of what is not included.

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Conns credit-score-guide-r1

  1. 1. WHAT IS NOT INCLUDED IN MY CREDIT SCORE? Everyone knows credit scores are important — just look at how many online services and smartphone apps are dedicated to checking your credit. Yet when it comes to understanding how credit scores work, many people are in the dark. Several factors help determine your credit score, but what doesn’t go into it might surprise you. Here’s a look at some common factors that, contrary to popular belief, have no bearing at all on your score with the three major credit bureaus. Your Marital Status Being married means your spouse’s name might appear on your credit report. However, in the eyes of the credit bureaus, you and your spouse have separate credit reports with individual scores. Income Level Your income affects your credit score only if you don’t make enough to pay your bills on time. Paying late is sure to impact your credit score even if you’re earning a six- figure income. Your Debit Card Activity Not all plastic is created equal when it comes to credit bureaus. No matter how often you use your debit card or for whatever reason, that activity won’t raise or lower your credit score one iota. Government Income Receiving government assistance such as Social Security or other entitlements doesn’t impact your score in any way. Your Credit-Checking Activity Although the credit bureaus note each time your credit is checked, checking it yourself is considered a “soft” inquiry and does not affect your score. If a lender or a credit card issuer checks your credit, however, that is considered a “hard” inquiry, and your score will suffer a small hit. Criminal Record Being arrested or sent to jail won’t affect your credit score on its own; but civil judgments do. Bankruptcies, tax liens, overdue child support or alimony, and monetary judgments all impact your score. Place of Residence Regardless of where you live, your location does not factor into your score — although it may impact your property taxes and/or insurance rates. Overall Net Worth Likewise, simply having a lot of money in the bank or through investments won’t help your credit score if you don’t use that money to pay down your debts. Generally speaking, credit bureaus are only interested in how responsible you are, not how rich you are. Education Level Your student loan information definitely factors into your score, but the extent of education you’ve received doesn’t. Sources: