Shocking things that don't touch your credit score.
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Some life events seem major to you, but, because the credit bureaus couldn’t care less about them, they won’t affect your credit score. Some of these surprising things are positive and some are negative in terms of your quality of life, financial status, and well-being, yet they don’t actually raise or lower your credit score. Take a look at these seven things you won't have to worry about affecting your credit score.
#1 Paying Your Bills On Time
We often mention that paying your bills on time is the first step towards re-establishing your credit. This is the foundation for financial responsibility, but a lot of the bills you pay won’t affect your FICO score whether you pay them on-time or late. Typically, utilities, rent, and medical bills can all be paid late without affecting your credit score. Paying them on time also won’t help your score.
#2 Earning A High Income
Earning a good wage makes it easier to pay your bills on time and keep your credit card balances low. However, simply earning a high salary won’t boost your score. In fact, some high earners have lower credit scores than middle or low-income earners because they overspend, carry too-large balances on their credit scores, or aren’t financially responsible despite their high wages.
#3 Criminal Activity, Arrest, Or Even Jail
This might surprise you, but being arrested for a crime won’t affect your credit—no matter the crime. Any criminal record is not reflected on your credit report and therefore not factored into your score. Even if you go to jail, your credit can remain in tip-top shape so long as your bills get paid while you’re in the pokey.
#4 Paying Or Filing Your Income Taxes Late
Income taxes can be troublesome for people who have their withholdings set too low or who might be self-employed and don’t set aside enough income to pay their quarterly or annual taxes. However, filing your incomes taxes late, paying late, or filing taxes when you’re unable to pay the amount due won’t immediately impact your credit score. If it goes into collections or a lien, that’s another matter.
#5 Checking Your Own Credit
Most people know that when they apply for a loan, credit card, or other financing, the potential lender or creditor runs a credit check. This is called an inquiry or a “hard pull.” These reflect on your credit report, and having too many hard pulls can drop your credit score for a while. Eventually, these inquiries lose their impact on your score and drop off your report. But checking your own score doesn’t hurt.
#6 Where You Get Your Income
If you lose your job or have financial strife and wind up on unemployment or taking some form of public assistance, that won’t affect your credit score so long as you pay the bills that report to the three credit bureaus. For those that rely on alimony and child support to get by rather than income from a job, that doesn’t matter either. Pay your debts, don’t overextend, and you’ll be fine.
#7 Getting Married Or Divorced
These are major life events that don’t impact your credit. Even if you marry someone with very good or very bad credit, your score won’t rise or fall. Marriage only impacts you if you finance something together. Divorce itself won’t impact your score, but it could mess with your ability to service debt. Marriage or divorce seem like big deals to you but will not directly affect your credit score.
To find out more about improving your credit score after bankruptcy, contact Credit Score Keys for a free consultation at our Raleigh, North Carolina offices. Call 919-495-2365 now for more information.