A lot of facts are taken into account by the credit bureaus while computing your credit score. But there are other factors which does not affect your credit score. For instance, Insurance premium payments will not affect your credit score? Letâ€™s now look at the ten facts that do not impact your credit score:
1. Overdrafts against FDs
You need not worry about
your overdraft against your FD as it will not influence your credit score. Overdrafts
are not considered to be Loans unless there is a failure in paying back to the
bank. Hence remember that overdrafts cannot impact your credit score.
2. Your salary
Your credit reports normally
contain info with regard to your past or present employers, but such
information is not significant to your credit score. What and how much you earn
is not considered while computing your score.
3. Your level of education
educational qualification whether a graduate or post-graduate does not matter.
Credit bureaus never ever really care about whether you have attended a college
or not. It absolutely will not make an impact on your credit score.
4. Debit Card
usage or even the mode in which you use your Debit Card will not impact your credit score. But if lot of cheques issued by you if
bounces back then it is sure to have an impact your credit score.
The amount standing against
your name in a bank or even your other financial holdings will not impact your
credit scores. The only thing linked to your net worth that appears on your
credit reports your mortgage.
6. Divorce proceeds
The money or even the alimony you pay your spouse following divorce does not impact your credit score. But, after divorce in case debts are transferred in your name or you transfer debts to another person, it will impact your credit score.
7. Insurance payments
While getting insurance
your credit score matters but once you secure a policy it does not matter. If you
skip payments, then it may land you in a very sticky position, but at any rate,
your credit will not be affected.
8. Rent payments
For a lot of people, rent
is the main check they write every month. But whatever be the case whether you
pay rent on time or not it is not going to affect your credit score.
9. Rate of interest on loans
makes no difference whether you pay a large amount of interest or a very small
amount on your loans. Nevertheless, your credit score can have an impact on the
interest rate charged by lenders. The higher your credit score, the lesser will
be the rate of interest on loans taken by you.
10. Utility bills
Utility bills in your name seem in particular counter intuitive. Conversely, you will not get credit just to open a utility account. But if you screw up and land in groups, though, and your credit score is sure to suffer.