Surprising Things That Won’t Affect Credit Score

credit scoreMany individuals are confused about what affects their credit score, and if you are a financial professional you probably find yourself being asked this question frequently by your clients. Perhaps you found this article because you are a consumer wishing to obtain a line of credit for a major purchase. Concerned about keeping scores above the recommended healthy number of 700, people can become alarmed when they hear what may or may not impact their rating. Read on for a simple guide of things that, perhaps surprisingly, will not affect the credit score in a negative way.

Checking It Yourself

You will not lower your credit score by checking your credit report yourself. However, when other people check it, that will lower your credit score. You can safely check your score countless times and it will have absolutely no impact if you use a reputable source. There are many legitimate companies that allow you to check your credit report and score as often as you like for a small fee each month.

Changing Employers

Credit reports display employer information, but even if you switch jobs often, it will have no impact on your credit score. The only impact that switching jobs may have on your credit score is if the new employer checks your credit report before hiring you. You can avoid this from happening by simply talking to the employer and explaining that you have no problem with them seeing your credit report, but you would rather that they allow you to check it yourself and print it out for them because it will not affect your score if you do it this way. Many employers will not have a problem with you doing this as it shows them that you are conscious about your score and they will still get to see your credit report.

Late Utility Payments

Utility companies do not report to any credit bureaus. Even if you pay your utility payments late it will have no impact on your credit score. However, if you do not pay them at all and they send it to a collection agency it may impact your score. To avoid this from happening, it is best to set up payments directly with the utility company since it won’t be reported to a credit bureau that you owe them money.

Credit Counseling

Credit counseling is available to help individuals get out of debt. Contrary to popular belief it will have no impact on an individual’s credit score. Since credit counseling is the route that many people take right before claiming bankruptcy, it is a common myth that it will affect credit score just as bankruptcy does. The credit counseling agency will ensure that payments to lenders are made. As long as these payments are made on time there will be no affect on credit score.

A good credit score will take time to obtain. Many things will affect it, but the above mentioned items will have no effect on it. Paying bills on time and knowing what affects credit score will help build solid credit.

About the Author

Helen Parsons is a business blogger who has researched and written about many topics related to business and finance, including an article about the Best Online Accounting Degree Programs.