Credit score Truth and Myths

My score determines whether or not I get credit.

Lenders use a number of facts to make credit decisions, including your credit score. Lenders look at information such as the amount of debt you can reasonably handle given your income, your employment history, and your credit history. Based on their perception of this information, as well as their specific underwriting policies, lenders may extend credit to you although your score is low, or decline your request for credit although your score is high.

A poor score will haunt me forever.

Just the opposite is true. A score is a snapshot of your risk at a particular point in time. It changes as new information is added to your bank and credit bureau files. Scores change gradually as you change the way you handle credit. For example, past credit problems impact your score less as time passes. Lenders request a current score when you submit a credit application, so they have the most recent information available. Therefore by taking the time to improve your score, you can qualify for more favorable interest rates

Credit scoring infringes on my privacy.

Credit scoring evaluates the same information lenders already look at – the credit bureau report, credit application and/or your bank file. A score is simply a numeric summary of that information. Lenders using scoring sometimes ask for less information – fewer questions on the application form, for example.

My score will drop if I apply for new credit.

If it does, it probably won’t drop much. If you apply for several credit cards within a short period of time, multiple requests for your credit report information (called inquiries) will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.

At Credithelpfinancial our staff will take the time to sit and discuss what you know about your credit and determine which program Bank financing or In-house financing is best for you. We will take the time and discuss options with the area reps on your behalf. Remember minimum $1000.00 down the ability to pay and you are approved ask a sales rep for full details (some restrictions do apply).