Common credit misconceptions
Prepaid credit cards impact your score just like other credit cards. Prepaid credit cards aren’t reported to credit bureaus, so they won’t affect your score.
Unreported loans are included in your report. If a lender doesn’t report a loan, it can’t affect your credit profile.
All inquiries have the same impact. There are two types of inquiries: hard and soft.
You and your spouse share a credit score. When you get married, you and your partner will still maintain individual credit scores.
• A hard inquiry occurs when a financial institution pulls your credit report when making a lending decision. These will impact your score. • A soft inquiry refers to any other time your report is pulled, such as when your report is reviewed as part of a background check, or when you check your own credit report. These never affect your score.
Getting someone to co-sign a loan can increase your credit score.
If you need to have a co-signer to obtain a loan, it could signal to lenders that you may not be ready to handle a loan on your own.
Chapter 3: Credit scores
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