Have you ever tried to figure out what affects your credit score and what doesn’t? There are many things besides credit cards that can affect them and other things that don’t. Here are the top things that won’t affect your credit score.
- Bank Overdrafts – Although this prospect can be expensive, it in no way, shape or form affects your credit score. Make sure to clear up the overdrafts before they can be sent to a collection agency because if it does, then it will affect your credit score. It won’t be because your bank account went into the negative, but because it had to be sent to the collection agency.
- Income – Even though your employment information is on your credit report the amount that you earn isn’t. So the amount you make won’t be directly impacting your credit score, but it will affect how the bills are paid and how you make your payments. Those can affect your credit score, but having a low or high salary doesn’t.
- Payments to Insurance – Even though the companies will check your credit score they only do that to figure out whether or not they should insure you and what they will charge you. They don’t report late payments or any sort of payment information to the credit bureaus.
- Alimony and child support – These don’t typically affect the credit score any, unless you are behind and they need to involve a collection agency. However, it could impact your credit score, but worse than that, you risk being sued and arrested for the missing payments.
- Cell phone and utility payments – They typically check your credit score before issuing the services, but that is just to make sure if you need a security deposit or not. However, neither reports the billing or payment information to the bureaus. The only way it would show on your report is if the account had to go to a collection agency.
- Rent – Most of the time, even if you make your payments on time it won’t affect your credit score. Even if it did, most companies would just ignore it. The only things that could happen is an eviction, which could indeed hurt the score. However, some people do report rent payments to one of the credit bureaus, Experian.
- You checking your credit score – This won’t affect your credit score like the top credit card companies checking it would. If you use any of the credible source it won’t hurt, however, if you have a lender show you the score it will affect it.
- Interest rates – Just because you have high interest rates on some of your cards doesn’t mean it’s going to affect your credit score. However, there is a correlation because if you don’t have a good credit rating you will end up with higher interest rates.
Make sure to keep your payments sent in on time and everything should be okay. Most of the day to day activities aren’t reported on your credit score and shouldn’t affect it.