Everyone believes in one myth or the other. Sometimes, these myths become so prevalent that we totally accept them sometimes blindly without any consideration if they are true or not. However, do not believe these 5 money myths.
Mind Your Debt: You must have heard people say, "all debts are debts". This is false. Smaller debts would always be considered better than bigger debts. So just because they (both smaller and bigger debts) are both considered as debt does not make them equal. This is because a larger debt on credit card is considered more negatively than mortgage debt.
Don’t Cancel Your Credit Card: Those who are desperate to pay down debts are those who champion this myth. Yes, the importance of paying off a debt and not getting back on the habit cannot be looked down on. However, might hurt your credit score rather than help you. In fact, closing your credit card depending on your credit utilization could mean damaging the second-most important part of your credit score.
Employers Cannot Discriminate by Credit: True, some employers might request to view your credit report (which in some states are against the law) as part of your background check. Nevertheless, this is not the same as looking at your credit score. Employers are only to view the special version of your credit report set aside specifically for employers to view during background checks and not check your credit score.
Your Income Does Not Affect Your Credit Score: This is a very false myth. Unlike the view of many consumers that getting a better paying job will certainly help your credit score your income isn't factored on your credit score. The fact that your employer information may be listed on your credit report does not mean it has any impact on your score. The same applies to your demographics.
Joint Accounts Do Not Share A Credit Score: Being married and having a joint account does not mean you and your spouse have the same credit report. The truth is, you don't. Everyone has a personal credit report. And if you two have a joint account, this will appear on your individual credit report. And if you two, as a couple decide to borrow funds, your individual credit report will be screened, and your overall creditworthiness will determine if you would be granted such loan or not. This article is brought to you by TFC Title Loans, offering premium title loans since 1994!
