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5 Waterdown Credit Score Myths Busted

5 Waterdown Credit Score Myths Busted

One of the key purposes of the Car Nation Canada blog is to keep you all updated on what’s new in motoring and in auto finance. One of the ways we do that is by busting myths. This is a quick and easy to way tackle common misconceptions around auto loans and credit in general. Today our auto loan team tackles some common Waterdown credit score myths we hear all the time.

 

You only have one Waterdown credit score

 

Not true. You have one credit score per credit bureau and Canada has two of those. We have TransUnion and Equifax and each keeps a credit file on you. While they may both say the same things, they both go about their business in different ways.

 

If you’re checking your credit score, you can just check one bureau. If you’re correcting errors, making sure a bankruptcy has been completed or something more serious, you should check both.

 

Getting a raise means my credit score should rise too

 

Not true. On the surface, you would think that having more money each month would make you a better borrower, but one has nothing to do with the other. Your credit score reflects how you manage debt, not how much you earn.

 

While you may earn more now, that doesn’t make any difference to whether you pay debts on time, whether you live within your means or take debt seriously. That’s what the credit score takes into account.

 

My partner’s debt is bringing my credit score down

 

Not true. Your partner’s debt issues will not impact you unless they default on a loan in joint names. If your name isn’t on the debt, it won’t impact your credit score. If your name is on the debt, like a joint mortgage or joint auto loan, it will impact your score if you don’t make the payment.

 

There is a thing called financial association to take into account too. If a partner or ex-partner has bad debt and you have had joint accounts in the past, you may be associated with them.

 

Contact TransUnion or Equifax to have the financial association removed if it causes you problems.

 

Paying debt faster improves your score

 

Not completely true. If by paying debt faster you mean overpaying an auto loan so it is paid off faster, it won’t make a difference to your credit score.

 

If you mean paying debt faster to get things under control, that can make a difference to your credit score.

 

Having little credit will actually reduce your score slightly as there won’t be many entries and you won’t have much of a credit mix. Having too much debt will also impact your credit score as it affects credit utilization.

 

Going bankrupt means no more auto loans

 

Not true. Sure, going bankrupt will mean having trouble borrowing until proceedings have completed but it isn’t the end. You will need to rebuild your credit and prove that you’re now in control but you can still get an auto loan.

 

Our Waterdown auto loan team finds competitive car loans for those coming out of bankruptcy all the time. Life may be tough but you still need to get to work. That’s where we can help.

 

If you need help or advice on anything to do with auto loans in Waterdown, contact Car Nation Canada today, we can help!

 

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