Every one of us has applied for any kind of loan at one point in our lives. Whether it is for a home mortgage, car loan or credit card loan, your credit report that contains your credit scores will be the basis to determine if your creditor will give you the best deals and friendliest interest rates around. A good or clean credit score can get your application approved. There are many lies that are circulated by creditors and other people who are planning to benefit on your ignorance.

One of the lies that are running around is that the frequent checking of your credit scores will affect your chances at applying for any loan because you will see a decrease in your credit score due to this simple act. If it was you who are checking on your credit scores this will not be credited against you; this is what we call as soft inquiry. If on the other hand you are applying for several credits just be sure that you do so within the same time period so that the inquiry will be counted as one. This is what is considered as hard inquiry that can affect your credit scores when not done in the right way.

Another lie that runs around is that there is a credit blacklist that the names of people who should not be lend any money. This is far from the truth since no such list exists. Once lenders see your credit scores they will either grant you that loan or not. In some cases even a bad credit score will not hinder you from getting a loan but you will pay for higher interest rates. Even if whatever race, religion and political groups you are in this is in no way deters you from being approved for a loan.

Another lie that goes around is that lenders can look at your credit report without you knowing it. In the first place they cannot see your credit report without a written permission from you. If you think that because FICO score exists that the lie about you having a single basis for you credit scores then you are wrong. Lenders have their own equations and methods of determining if you are credit worthy or not. They do not just rely on the credit scores found in your credit report coming from the credit bureaus.

If you think that just because you have never applied for credit that lenders will jump at the chance of letting your borrow money this is not so. Some factors are to be considered too like a record of your payment history and a mixture of varied credit applications. In summary, the only way for you not to be victimized by such lies and other kinds of lie is to educate yourself. Being ignorant about the truth will not exempt you from suffering the consequences of bad decisions because you were ill informed. It is not an excuse to be ignorant when there is available information that can educate you about the truth about your credit scores.