Credit Scores Myths

Credit scores indicate your ability to pay bills

They do not take into account income, wealth, employment status and/or many other indicators of ability to pay, they look at likelihood to pay.

Credit scores reflect your financial health

Financial health is consists of more than a credit score. Elements of an individual’s “financial health” may include net worth, income, existence/size of emergency fund, number and size of fixed expenses, etc.

Credit scores are the backbone / cornerstone / foundation of your financial life

Credit scores are one element of an individual’s financial health and an important element of an individual’s credit health.

A credit score of 0 means the consumer is a bad credit risk. (This might be reflected as a letter such as “R” for rejected.)

Scores range from 300-900. A credit score of 0 indicates that the information on the individual’s credit report is not sufficient to generate a score with that particular credit score version. Once there is more information, a score will be generated.