When it comes to availing loans either for your business or to serve personal requirements from captaincash.ca, the credit score is something that stays a common factor for all. For those who do not understand what a credit score is, it is in simple terms the score that allows banks and insurance providers to judge you and your financial capabilities.It is said that when you own a credit card, you are to pay back the credit amount on time and while you do so, your scores are at its best and you are judged to be a person with good financial backup. Whereas on the other hand, if you fail to pay the bills for any reason whatsoever, the scores go down and you are termed as someone with no financial backup who would fail to keep up to financial promises in the days to come.
While there are numerous myths that surround credit scores and its association with loans, here are a few sorted out for you.
Myth 1 – Without a credit card, you cannot apply for a loan
As long as you prove your financial situation to the lender, such as captaincash.ca, they wouldn’t be bothered whether you have a credit card or not. You may come up with proof of your income as well as other financial responsibilities such as shares and debentures and avail a loan for your business or personal needs. Sometimes, students or fresh graduates receive loans on the basis of their parents’ credit scores as well.
Myth 2 – If you have too many credit cards, chances of not receiving a loan is less
There are times when applying for too many cards or owning them all would make you look like someone with intentions to dupe but that may not be the case with you. When you have multiple credit cards and most of them stay unused, it indicates that you are financially secure and do not depend on credits to serve your needs.
Myth 3–Credit score is only counted with credit card bill payments
There was a time when that was the case when only credit card payments came up with a credit score. In the present times, paying for utility bills online is also considered as a credit score as that too lets them find out about your financial status and whether you are paying them on time or not.These myths are known to confuse people and when answers as such come around, it getseasy for people to apply for loans.