- Credit scores are unaffected by income
- Or by changing your marital status
- Checking your own credit reports or credit scores has no effect on your credit score
Certain behaviors can negatively or positively impact your credit scores. However, not every action will affect your score? The following 10 items have no impact on credit scores (but may affect your finances).
1. Using a debit card
Paying for items with a debit card won’t affect your credit reports or credit scores. Credit cards, on the other hand, are essentially borrowed funds you must repay. Debit cards don’t require borrowing money since you already have it. You can also buy gift cards with a dollar amount already loaded on them, like those sold by pharmacies and grocery stores. Credit scores can be impacted by activity on secured (prepaid) credit cards, which are issued by credit card companies.
2. Salary drop or rise
Your credit scores won’t be directly affected by salary cuts or increases. Income is not considered when credit scores are calculated, but some lenders and creditors may consider it when evaluating a credit application. Also, your debt-to-income ratio, the amount of debt compared to your income, may be checked. Losing your job won’t hurt your credit. Credit scores are not affected by job loss unless other behaviors, such as late or missed payments or balance increases, affect them.
Credit scores do not consider your marital status. Marriage won’t affect your credit reports, and neither will your spouse’s.
You may see your spouse’s credit report if you open joint credit accounts. Not paying those accounts on time can negatively impact your credit score.
Although the divorce filing itself won’t directly affect credit scores, your credit score may be negatively impacted if you miss or charge late payments as a result. Property division in Canada varies from province to province. You may want to find out what is needed in your province.
You may be relieved of responsibility for a joint account by a divorce decree, but you’re still responsible for debts and creditors. The two nationwide credit bureaus may take into account late or missed payments reported to them if your name remains on an account.
5. Credit applications denied
Credit scores are not affected by denied credit applications. Hard inquiries may affect credit scores from an application itself. Several lenders may reject you based on the same factors in your credit history.
6. Excessive account interest rates
Your credit account interest rates and annual percentage rates aren’t used in calculating your credit scores, but missed payments can hurt your credit score.
7. Credit report checking
Keep track of your credit accounts by checking your credit reports regularly and know what is being reported by creditors and lenders. Credit scores are calculated based on information in credit reports, so monitoring your credit reports can help you. Get your free Equifax credit report online today.
You will generally get a soft inquiry when pulling your Equifax credit report, but this will not affect your credit score.
8. Refuting inaccurate credit information
For free, we’ll check your credit report if you see any errors or omissions. Our credit report experts will update your Equifax credit report as needed. Your credit scores may be affected by the updated information (positively or negatively), however, the fact that there is disputed information on the reports will not affect them.
9. Getting a ticket paid (on time)
When you pay your traffic ticket by the due date – such as a parking or speeding ticket – it will not appear on your credit report. If you pay your traffic tickets on time, they will not affect your credit scores (such as your car insurance premiums).
10. Cashing in RRSPs or TFSAs
Individuals can build their wealth using investment accounts such as RRSPs, RESPs, TFSAs and RDSPs. You do not have to worry about credit scores being affected by the withdrawal of funds from these plans, although tax implications may arise.