Friends and family living in your home affect your credit rating

Unless you are sharing financial connection with them. This for example could be a joint mortgage, friend and family don’t have direct impact on your credit rating. Just because you are living with someone doesn’t mean your financial connection.

If for instant you do have any financial connection with someone lender may have a look at their credit rating also as well as yours. This is because the other person circumstances might affect your ability to [dcl=1702] make payments.

Repaying your credit cards in full lowers your credit score

This could be the biggest myth of them all, in fact you are likely to [dcl=1702] get a much higher credit rating if you do pay it in full. This shows your can more than afford borrowing and are likely to get another loan if you want on. You’re more likely to get a lower score if you miss payments, make just minimum repayments on your cards or borrow right up to your credit limits.

It doesn’t matter how many credit accounts you have

Lender want to be confident that you can afford more credit. The lender prefer if people don’t already owe large amount on other multiple accounts. Lender sometimes also favour customers who don’t really relay on the credit they have. So try keep your borrowing on cards to less than 25% on your credit limits if you can 

Myth 9: You only have one credit score

Every lender has its own unique way of calculating credit scores and some use different formulas for different products such as loans and credit cards. So you could get 3 different credit scores with 3 application you made in a single day even if it’s the same lender.

Items in your credit history stay on file forever

Your credit report is designed to give lenders a decent picture of your recent and current financial position — they’re not interested in seeing that a 40 year old missed a few repayments when they were 21 because it has no relevance to their likely behaviour today. Most information about your credit history is therefore held for around six years.