Finances are fragile and cannot bear mistakes and regretful decisions. Their absolute reflection is your credit score performance. One can judge your financial behaviour by your credit ratings. Poor credit performance means you do not do your payments on time or have defaults. No financial institution is ready to consider you whether it is investment company or a lending company. For people with their one start-up, need to be more cautious on this. They may need to get startup business loans but poor credit can be a big obstruction.
Responsible attitude towards obligations can be seen in your good or excellent credit scores. Specifically, you can avail funds with not much stress. This means you need to be very cautious about that but not over conscious.
Sometimes due to incomplete information, you avoid to do few things because you think that can push you in poor credit performance. But, there is no use to restrict yourself, in fact, it is better to keep yourself aware of the situations that are not threat to your credit scores.
- Social media use
Oh come on! Are you serious? Who told you to restrict your use of social media to avoid bad credit scores? No matter what social media platform you use, LinkedIn, Facebook, Twitter, Google+, there is no effect on your credit ratings.
- Your income
Earning good salary does not give a boost to your credit profile and low income does not become the cause of degrading of credit score performance. What matters most is how timely you pay off your obligations. With a good salary, you do not pay your installments on time; the credit reference agency is going to show that in your credit records. Your income has nothing to do with your credit records.
- Insurance inquiries
You know how insurance companies are. They are always desperate to offer you a good deal. For this, they access your credit report to know about your financial status. But, this does not affect your credit rating because the inquiry is shown only on your personal credit report. This information is not transferred to the lenders.
- Checking your own credit score
It is natural to have a curiosity about your credit performance but you think that it can degrade your credit performance. But this is not true, this type of credit check is soft credit check that does not affect your financial records in any case. Now, you can check your records as many times as you can. Nothing is going to happen with your credit ratings.
- Your age
Age is an important factor when you take a loan, but it is certainly has nothing to do with your credit score. The rule is simple, pay your debts on time and you will have an excellent financial report even at the age of 80. On the other hand, do default and the embarrassing mark of poor credit spoils your credit performance, no matter how young you are. Once you fall into poor credit performance, you are justified with no other lending options, but bad credit business loans that come on little higher rates than the average loan options.
The above things are never going to affect you financially. Do not get stressed and stay away from any such myths, in fact focus on the growth of your business.