Some consumers who find out that they have bad credit immediately take the number to heart; fearing that the low score is a judgment of their character. The psychological effects of a low score can be troubling, as many feel there is no way to improve their numbers.
Yet this is not the case. U.S. News and World Report recently detailed some common myths that surround credit scores. And the first one listed is that a consumer can feel that he or she “is” their score – that the score is a final judgment that will never change.
That’s simply untrue. The score fluctuates based on payment history. So a consumer with bad credit one day might have a good score in a few months thanks to diligent payments. Another thing to remember is that a “good score” depends on what the consumer is applying for. Their score might not qualify them for a mortgage, but they’re likely pre-approved for a car loan.
The news source also says that demographics play no role in a credit report. Race, immigration status, gender and even age do not affect a credit score. Many assume that young people can’t have good credit – but it’s really about length of credit history. A consumer who started credit history at 18 and is now 22 will have a longer history than someone who applied for credit at 35 and is now 36 – youth has nothing to do with it.