Beyond the Score: Diving Deeper into Your Credit

Most people are familiar with what you can do with a good credit score and how to get one. For example, if you want to buy a car or a house, you have to have a good credit score. How do you get a good credit score? Establish credit, pay your bills on time, and limit your applications for new credit.


But what don’t you know about your credit score? Here are seven things you probably don’t know about your score.


  1. Usage. The amount of available credit compared to the amount used is really important. Having open credit with a low usage shows stability, which is a key factor when applying for new credit or when your score is being analyzed.
  2. More than Loans. A poor credit score can actually hurt you in more ways than just not getting a new credit card or loan. For example, a bad credit score could affect your ability to move to a new apartment, get a job, get lower insurance rates, or obtain a professional license in your field.
  3. Education and Credit are Not Synonymous. Just because one person has more educational degrees than someone else does not mean that they will have a higher credit score. Education does not factor into your credit score.
  4. Knowing Your Score Cannot Hurt You. Previously knowing your credit score seemed like a more difficult endeavor. Now, consumers are urged to know their score to help keep them mindful and in control of their credit. There are no negative repercussions that can come from having too much knowledge on the topic.
  5. Mixing Credit Types. Having a healthy mix of credit types is good for your credit score. People who have credit cards could have a lower credit score than those who have a credit card and a car loan or mortgage.
  6. Co-Signing = Full Responsibility. One common misconception that comes with credit is co-signing for a loan or credit card only means that you are helping someone else obtain the credit or loan. While it seems like a great idea at the time, co-signers are just as responsible as the account owner when it comes to repaying the loan or credit.
  7. Stale Accounts. If you have open credit cards but have not used them in over 24-months, the lack of use may negatively impact your score.



Whether you are looking to improve your credit history or focus on financial wellness, working with EmployeeMoney helps build a positive credit history by reporting on-time payments directly to the credit bureaus. Not to mention, EmployeeMoney never uses your credit score when evaluating your ability to take one of our unsecured, fixed interest loans! Your job is your credit! Contact EmployeeMoney today to learn more.