Over the years, as the concept of credit score has become more popular, the consumers’ concern with their credit scores have increased. However, people tend to form false assumptions and erroneous beliefs due to few credit score myths. However, these myths are so convincing that people fail to identify these myths, ending up affecting their decision making quite often.
All lenders need to be sure that you will repay the money that you are borrowing. To ascertain that you will pay the money back, they refer to the credit report. The first step to having a good credit score is to understand what credit report is and what components it comprises. Conceptually, the credit report reflects how you have borrowed in the past, and what your credit history has been like.
Credit scores are an important decision making factors for the banks that provide credit facility to you. A credit score over 750 is considered a good score by lenders.