Credit scores are now almost a stuff of mythology. There are a number of credit myths which perform no function at all. Most of them are based on the assertion that a person in reality does not require credit at all. Perpetrators of this way of thinking put forward the explanation that since most of us are not buying houses or vehicles, there will be no requirement for credit-ever. In such a scenario, it does not make sense to know about your credit score. If you do not “settle down”, there is no need to maintain credit scores.
The reality is however not so simple. It is impossible to know what awaits in any one's future. Even if you are not keen to buy properties or vehicles, it is important to enjoy good credit so that you can begin a business. Your credit will be verified by landlords. There are chances that your employers will too. In case you are living a life with bad credit, there is more than an even chance that it will catch up-and shatter your dreams.
Another oft repeated myth is that millennials suffer from bad credit as they cannot manage their finances. The truth is that the millennials are at the youthful stages of their lives. It takes a longer period of time to construct a credit score. It should be kept in mind that credit scoring is how you are good with others money (the bank's, in this case) and not your personal finances. To start credit, start using a credit card and build the credit. Keep your debit card use to a minimum or none at all.
A number of things surprisingly do not affect your credit card score. First and foremost is the amount of money you earn. Your salary will not be mentioned in the credit report. There is no correlation between high salary and good credit report. However, your income may influence the credit access and the credit score.
Your net worth will also not affect your credit score. It is immaterial whether you have a large investment portfolio or a huge savings account. You may have a large mansion and million dollar yachts- but all of these will not impact your credit score in the slightest. Your education also plays no part in the credit report. Your academic qualifications (or lack of) does not influence the slightest.