Your credit report helps lenders decide whether or not they want to enter into a relationship with you‚ but when it comes to credit reporting‚ there are many misconceptions people have about how this vital financial profile gets created. Here is a look at four things you may not be aware of that go into creating your credit score‚ show up on your credit report and what goes into credit monitoring. The facts may just surprise you.
- Income isn’t considered a measure of creditworthiness.
- Salary hasn’t appeared on credit reports in over a decade because what lenders are looking for is whether or not you are likely to make payments on time, not if you can afford them based on your income.
- Employment status isn’t apparent.
- Although whether or not your most recent employer appears on your report varies between the bureaus, credit reporting doesn’t cover whether or not you are actually employed.
- Credit reports don’t get married.
- When you walk down the aisle, you and your spouse share a future, but not a shared financial past. You always retain your own personal credit report.
- Criminal record won’t always affect your credit.
- So long as your crime doesn’t result in debt accrued — unpaid child support, for instance, could show up on your report — minor criminal offenses won’t show up on your report.