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The things that won’t hurt your credit score

The things that won’t hurt your credit score

January 27, 2017
things that won't hurt your credit score
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A lot of things can hurt your credit score. Knowing all these things is important, because your credit score is also important, and you have to always take the best care of it. But what doesn’t hurt your credit score? And is it important to know these things? A lot of people may not think so. However, you should never underestimate the benefits of a peaceful and stress-free life. Knowing what the things that won’t hurt your credit score are can give you a little peace of mind. So, here they are:

  1. Your income

Sure, there’s information about your employer listed on your credit report, but that doesn’t mean that income will impact your credit score in any way. It doesn’t really matter whether you have a low salary or the highest one possible. Your credit score will not be affected by it.

  1. Not paying your rent, insurance or other bills on time

It’s true that insurance companies look at your credit score when calculating your premiums. But this doesn’t mean that they’ll report you to the credit bureaus if you don’t make a payment on time. And neither will other agencies, if you don’t pay your utility or cell phone bills. But be aware. If you continually default on your payments, your account may be sent to the collections agency who would then report to the credit bureaus. As for your rent, missing one payment might not hurt you, but, if you get evicted, your score will suffer.

  1. Going into overdraft

This can get expensive. However, there’s no chance of it affecting your score if you settle it before the bank sends your account to a collections agency.

  1. Checking your credit report

If a lender makes a hard pull on your credit report, that will drop your score by 5 to 10 points, because it will look like you’re applying for more credit. It doesn’t mean, however, that you can’t do it. You can check your own credit report as much as you like without any worries. It will not be damaged.

  1. High interest rates

Some people think that, because lenders offer the best interest rates to those with the best credit scores, if you have high interest rates, it means that you have a poor credit score. Fortunately, that’s not how things work. Your credit score influences your interest rates. It’s not the other way around.

  1. Your age

The only age that matters when it comes to your credit score is the age of your accounts. Sure, a younger person may not have enough credit history, but that doesn’t mean that your score will improve as you get older. A senior can also have too little credit history if he or she starts using credit cards only later in life.

The bottom line

We all make mistakes from time to time. It’s normal. However, that doesn’t mean that we should live in fear for the rest of our lives. It’s true that there are a lot of things out there that can hurt your credit score, but some things don’t.

Gary Morgan

Gary Morgan is a Britain transplant. Finance background, enjoys tea, politics and soccer (or football for everyone across the pond). Get in touch with him via email

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