While failing to make payments on time or defaulting on a loan can hurt a credit score and should be avoided, there are many actions which may seem to damage a credit but in fact do nothing. These actions, while they may not represent ideal financial behavior are harmless to your score and should not be cause for concern in terms of your score. In order to help put your mind at ease and allow you to focus on the actions that can actually harm your score, here are ten things that have no effect on your credit score whatsoever.
1. Bank Overdrafts: While over drafting your bank account is never a good idea and will result in numerous fees, the fact it that it has no impact on your credit. The only time where a bank overdraft can harm your score is if your account remains over drafted and the bank sends your account to collection.
2. Your Income: No matter how much money you make, your income has no bearing on the quality of your score.
3. Insurance Payments: Although insurance companies perform a credit check before calculating your premium, your insurance payments are not reported to credit companies and as such do not impact your score.
4. Child Support: Child support and alimony payments will not affect your credit. Your score can be damaged, however, if you fall behind on payments and a collection agency has to get involved.
5. Utility and Cell Phone Payments: No matter how quickly or late you pay your cell phone or utility bills, your credit score will not change.
6. Rent: Much like other monthly non credit card payments, your monthly rental history has no bearing on your credit score. With that in mind, it is still unwise to fall behind on your rent as it could lead to an eviction, which will affect your score.
7. Checking Your Own Credit: The only time your credit score is affected by a credit check is when a lender pulls it. You can check your credit score as many times as you would like and your score will remain unaffected.
8. Your Interest Rate: It is important to remember that your credit score determines your interest rate, not the other way around.
9. Credit Counseling: Although a history of credit counseling will show up on your credit history, the fact is that it has no impact on your score.
10. Your age: While stated on your credit report, your age has no impact on your credit, although a younger person's lack of credit history may be reflected in the score at first.
While there are many different activities that can help or hurt your credit, the ten mentioned here have no effect. With that in mind, it is important to remember, however, that just because something does not impact your credit score does not mean it is prudent financial behavior. By adhering to good financial habits, you can be sure that your credit score and other areas of your life are maintained at a responsible level.
While failing to make payments on time or defaulting on a loan can hurt a credit score and should be avoided, there are many actions which may seem to damage a credit but in fact do nothing. These actions, while they may not represent ideal financial behavior are harmless to your score and should not be cause for concern in terms of your score. In order to help put your mind at ease and allow you to focus on the actions that can actually harm your score, here are ten things that have no effect on your credit score whatsoever.
1. Bank Overdrafts: While over drafting your bank account is never a good idea and will result in numerous fees, the fact it that it has no impact on your credit. The only time where a bank overdraft can harm your score is if your account remains over drafted and the bank sends your account to collection.
2. Your Income: No matter how much money you make, your income has no bearing on the quality of your score.
3. Insurance Payments: Although insurance companies perform a credit check before calculating your premium, your insurance payments are not reported to credit companies and as such do not impact your score.
4. Child Support: Child support and alimony payments will not affect your credit. Your score can be damaged, however, if you fall behind on payments and a collection agency has to get involved.
5. Utility and Cell Phone Payments: No matter how quickly or late you pay your cell phone or utility bills, your credit score will not change.
6. Rent: Much like other monthly non credit card payments, your monthly rental history has no bearing on your credit score. With that in mind, it is still unwise to fall behind on your rent as it could lead to an eviction, which will affect your score.
7. Checking Your Own Credit: The only time your credit score is affected by a credit check is when a lender pulls it. You can check your credit score as many times as you would like and your score will remain unaffected.
8. Your Interest Rate: It is important to remember that your credit score determines your interest rate, not the other way around.
9. Credit Counseling: Although a history of credit counseling will show up on your credit history, the fact is that it has no impact on your score.
10. Your age: While stated on your credit report, your age has no impact on your credit, although a younger person's lack of credit history may be reflected in the score at first.
While there are many different activities that can help or hurt your credit, the ten mentioned here have no effect. With that in mind, it is important to remember, however, that just because something does not impact your credit score does not mean it is prudent financial behavior. By adhering to good financial habits, you can be sure that your credit score and other areas of your life are maintained at a responsible level.
