The majority of Britons are confused about their credit rating and have been fed misinformation about how it works and what it is for.
Research, carried out by Credit Expert, found that a huge 71 per cent of people believe former residents who previously lived at their address can affect their credit rating.
This is untrue and is just one of a string of falsehoods which many people have come to associate with credit ratings.
Of those who took part in the survey, 63 per cent said that they thought friends and family can affect the ratings of people they live with.
In addition, 41 per cent thought that a poor credit rating meant that you were on a blacklist. Credit Expert says this is untrue and points out that all lenders make decisions based entirely on their own policies.
As well as highlighting the myths surrounding credit ratings, Credit Expert has also outlined what kind of things can affect a person’s credit score.
Past debts play a big role in an individual’s credit rating, with missed payments remaining on a credit report for 36 months.
The score can also be affected by other people to whom you are tied financially, for instance if you have a joint account with somebody. Even if the person is an ex-partner and you have split up, it is important to ensure that all financial ties are broken.
Bankruptcy is another negative mark and will show on your credit report for at least six years.
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