credit score
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In the financial world, a credit score plays a crucial role in almost all types of transactions. Whether it is related to the approval of loan or credit cards or something related to rejection, this three-digit number is important in judging the credit behavior of an individual.

However, from the starting of our professional career, an individual is told and given guidance on the maintenance of a good credit score, so as to avail loans and credit card easily. But have anyone ever told you about factors that don’t impact your credit score? Maybe, no one! So, scroll down and get an insight into it:

Salary of the Individual

Your salary has nothing to do with the credit score. Whether you are earning a few thousand or lakhs, your credit score will never get affected by it. On the other hand, your spending habit leads to a good and bad credit score. Just give a brief check to your employment history as any wrong or misleading information may lower down the score.

City of the Individual

Just like the salary, the city where you live in or have lived in will not create an impact on the credit score. However, any change in address must always be updated with the credit agencies as this can impact the score.

Living on Rent

If you think that living in a rental home affects your credit score, then you are wrong. The credit agency has nothing to do with it. However, if your landlord put any complaint against you with the recovery agents due to nonpayment of the rent, then it might impact the credit score.

Loan Rate of Interest

Whether you are paying a high rate of interest or a low-interest rate, it doesn’t lead to any impact on the credit score. The credit agencies will only be in action during non-payment of interest rates EMIs or loan principal EMIs. Paying it late or delaying it for months hampers the credit score badly.

Premium Paid on Insurance

Your insurance premium has nothing to do with the credit score. Insurance companies may check your credit score while finalising the insurance policy but they never reveal any information related to insurance, its tenure, and premium. Delay in premium might lead to the cancellation of your policy but it never hurt the credit score.

Borrowing money against Fixed Deposit (FD)

If you are in urgent need of money and thinking to borrow it against FDs, then don’t think about credit score. You can easily take money against Fixed Deposits, as Credit agencies do not consider borrowing money as Loans. Unless and until banks are not sending recovery agents to get back the non-payment of overdrafts, your credit score will not be affected.