{"id":18056,"date":"2021-01-17T19:00:00","date_gmt":"2021-01-17T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/credit-score-myths.html"},"modified":"2026-03-26T16:02:02","modified_gmt":"2026-03-26T08:02:02","slug":"credit-score-myths","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/debt-credit-score\/credit-score-myths.html","title":{"rendered":"Don\u2019t Fall For These 5 Credit Score Myths!"},"content":{"rendered":"\n

A good credit score can help you achieve important milestones in life \u2013 like getting a loan for your home, buying a car or starting a business. However, there are many misconceptions out there about how credit scores work. Here are the most common credit score myths that you should be aware of.<\/strong><\/p> \n

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Your credit score<\/a> plays a vital role in your financial life, especially when it\u2019s time to make major decisions like purchasing your first house, getting a second family car or becoming an entrepreneur. In these scenarios, you might have to apply for a bank loan or credit card, and your credit score is among the key factors that will be taken into consideration when the banks are reviewing your applications.    <\/p> \n

Since these financial institutions do not know you well enough to gauge your financial health, they refer to your credit score to gain a better understanding of the potential risks that come from lending money to you. Ranging from 300 to 850, a credit score represents how likely you are to repay debt, and having a good score will mean fewer hurdles to clear when you\u2019re obtaining a loan, or being approved for a credit card. It can also help you attain lower interest rates and flexible payment periods. <\/p> \n

While the benefits of having a strong credit score are aplenty, there might also be some misconceptions about how credit score works among the public. It\u2019s not surprising as we have three recognised and reputable credit reporting agencies<\/a> in Malaysia, including Bank Negara Malaysia\u2019s Central Credit Reference Information System<\/a> (CCRIS), CTOS Data Systems<\/a> (CTOS) and Experian Credit & Information Services<\/a> (formerly known as RAM Credit Information) \u2013 with each organisation applying different approaches to compile our credit history, report and scores. <\/p> \n

So differentiating between fact and fiction is the first step towards understanding your credit score (don\u2019t worry, it\u2019s not difficult). Let\u2019s clear up the misconceptions now.<\/p> \n

1. FALSE: High salary equals a high credit score<\/h2> \n

It\u2019s easy to make this mistake: the more money you earn, the higher your credit score is, right? Actually, your salary does not directly affect your credit score, as credit rating agencies use other criteria for evaluation. For instance, CTOS<\/a> will calculate your credit score based on:<\/p> \n