Credit Score: Unknown Circumstances Affecting Credit Score
Did you know that credit bureaus don’t know everything about you? If you do not know, you will not know everything about them. Although credit bureaus know most about you, they may not report the impact of a divorce or roommate on your credit score.
What affects your credit score is something you are very curious about. Most of you know that paying bills on time and not leaving any unpaid bills has a positive effect on your credit score. In addition to these, there are other situations that affect your credit score. Let’s take a look at what affects your credit score, according to Rod Griffin, Senior Director of Public Education and Advocacy (EXPGY) for Experian.
Education level does not affect credit score. Credits, credit card accounts (such as student loans) and payment history, account balances, and other debt-related information are included on the credit report.
Getting an education loan is much easier than a regular loan. Someone who uses a student loan can obtain a normal loan more easily than others, as long as his name is registered in the system. You determine the effect of all the loans you take on your credit score. Paying your loans regularly and not leaving any debt will positively affect your grade. If you make your loan payments regularly, your student loan will help you with your regular loan:
- Increasing your “credit mix”
- Increasing your average account age
- Providing timely payment history
Does Having a Roommate Affect Your Credit Score?
Having a roommate can help significantly reduce your monthly expenses. However, it can also negatively affect you financially. Having a roommate has no effect on your credit score. However, this roommate may not pay the rent or the bills on time. In this case, your credit score will be badly affected. Your credit report could be badly affected as a result of your friend’s negligence. If your roommate doesn’t meet billing dates, it will give you a headache.
But don’t get upset right away because you can create a spreadsheet to solve this problem. The important thing at this point is to know if your roommate has paid your rent and bills. You or your roommate can request that the bills and rents you pay at the time be reported to the credit bureau. This will potentially have a positive impact on your credit score.
Do Divorces Get on Credit Reports?
Divorce is not reflected directly on your credit report. However, the stress and emotional breakdown of divorce can cause you to default on your payments. This is a move that directly affects your credit rating.
In addition, the financial issues involved in the divorce process often involve joint credit accounts, which greatly affect credit history and credit scores. If you have a joint account with your spouse, you must make sure that you close this joint account before your divorce or that your spouse leaves this account.
This is where couples have the most disagreements or disagreements. If the lender has not changed a contract and the responsible party is unwilling to pay according to the divorce decision, both parties will be adversely affected.
So, What Is the Effect of Low Scores on Retirement?
The idea that credit scores do not affect retirement is not very accurate. Because a good credit history can give you a better retirement than you imagined. Having a high score can entitle you to a utility deposit when you want to buy something.
A good credit report can also help you plan your route to retirement. With these good points, you can also get the best insurance rates for a new car or campervan.