Misunderstandings

Your credit score is not just determined by how much you have paid back or failed to pay, there are other components that also affect this rating. Your credit score will consist of the following components.

TIME TO INCREASE YOUR CREDIT SCORE

You might think you have to make a lot of mistakes before there is a significant effect on your credit score but you are completely wrong. Your credit score can take a hit within a few months.

YOUR INCOME MATTERS

Your income does not have any impact on your credit score. It’s not about how much money you make but more about how well you manage the money. A person who makes only $3,000 a month can have a better credit score than a person making $10,000 every month by managing their finances well.