Credit myths: tier list
Lesson 9 of 12 in our free Credit Scores & Files guide: a 5-minute money game with the key points below.
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Questions you'll answer
Mo's student loan balance is £45,000. How does that affect his credit file?
Quick facts
- Myth: “Earning more automatically raises your credit score.” — Income isn't on your file. Lenders ask for it separately for affordability.
- Myth: “Your flatmate's bad credit affects you just because you share an address.” — Sharing an address doesn't link you. Only joint credit (like a joint account) creates a financial link.
- Myth: “Getting married automatically merges your credit files.” — Marriage doesn't merge files. Joint borrowing creates a link — not the wedding.
- Fact: “Student loans from Student Finance England don't appear on your credit file.” — Income-contingent student loans aren't reported. Mortgage lenders may still factor the repayments into affordability.
- Fact: “Paying off debt can improve your file over time.” — Lower balances and settled accounts are a positive sign.
- Late payments can stay on file for six years → Real. Real. Their effect fades over time though.
- Having zero debt guarantees approval → Fiction. Fiction. Lenders also check affordability and history.
- Checking your own report lowers your score → Fiction. Fiction. It's a soft search.
- Different lenders can make different decisions → Real. Real. Each has its own rules.