A recent Visa Inc. survey revealed that many people don't know what goes into a credit score. The survey was based on 1,006 interviews with people 18 and older. Here's a list of things people incorrectly thought were used to calculate credit scores:
- Employment history
- Interest rates
- Assets and savings
- Age
- Where the person lives
- Nationality
- Ability to speak English
- Gender
- Race
While lenders do use some factors like employment history and assets to gauge your ability to repay a loan, none of the items on the list is used to calculate a credit score. Furthermore, the Equal Credit Opportunity Act forbids banks from turning down applicants based on their race, color, gender, age (unless you're under 18), religion, national origin, marital status, or because you receive public assistance.
Do you know credit scores better than the survey participants? Test your credit score knowledge in this credit score quiz.
Learn more about credit scores:
- 15 Credit Score Killers
- 10 Things That Don't Affect Credit Scores
- How Common Mistakes Affect Your FICO Score