Debunking credit score myths: Can I be blacklisted? 

If you worry that checking your credit report too often might lower your credit score, you’re not alone. This common misconception is one of several myths about credit reports and scores preventing people from understanding their personal finances and maintaining good financial health.

The idea that examining your credit report can be detrimental, especially if you check your credit score often, is widespread and totally unfounded. In reality, regularly reviewing your credit score, especially with reliable services like Experian, can be a wise financial move. This practice not only helps you stay informed about your credit status but also enables you to make better decisions when it comes to applying for credit.

Myth 1 – Taking a credit check reduces your score

If you’ve heard this one, you’re not alone. A survey early this year by credit reporting firm Experian found 58% of those they questioned felt this would have consequences for their score. But it’s not true. While it’s correct that each credit check with Experian shows up on your report as a ‘soft search’, only you can see this. So if you’re not bothered about how many soft searches there are then nobody else will care either. What’s more, it’s usually a good plan to check your score before applying for credit.

Myth 2 – There’s a ‘credit blacklist’ 

This is one of the biggest myths out there. First of all, there is no shadowy blacklist (so you’re definitely not on it!) A lender will decide on your application based on the information they get from your credit report, alongside any other information they have such as from your credit application form. Those of us with patchy histories won’t necessarily be refused, but may struggle to get the headline deals. That generally means lower credit limits and higher interest rates. This is where improving your credit score can be useful (and a simple way to start is to get on the electoral roll).

Myth 3 – Being refused credit can affect your score 

Of course a knockback hurts. But look on the bright side, if your application for credit is rejected it won’t appear on your report. This myth perhaps took hold (68% of the Experian interviewees believed it) because of something called a ‘hard inquiry’. These happen when you apply to a lender and they ask to check your credit. These will appear on your credit report and can affect your score slightly. You can’t really avoid hard inquiries, so it’s a good idea to apply only for credit you really need. You can check your eligibility for credit products on the Experian website before you apply, to help avoid unsuccessful applications and therefore wasted hard searches. It’s also a good plan to (you’ve guessed it) check your credit score before applying to ensure it’s in good shape.

Myth 4 – People you live with or previous occupants can affect your score

Just like passwords and the cold virus, credit scores are not for sharing. Nobody else has any bearing on your credit report (unless you apply to borrow jointly with a partner). Even if demand letters are arriving at your address for a previous resident, this isn’t something that will count against you. Similarly, your credit report will only be linked to that of a partner if you’ve made a joint application. In this instance, their behaviour could have a bearing on your score. 

So while your credit score is important, there’s probably less to fear than you thought. Look at it as something akin to a financial CV – it’s what you’re putting out there to show the credit world who you are. 

And it can help you to understand the offers you’re getting (or not getting). You’re not powerless in this process after all. Experian say that people who engage with their credit report tend to grow their scores by doing things like paying lenders on time and in full, staying well below their credit limit and even connecting their bank account to Experian, who can then vouch for their money management. 

Amy Milne checked her credit score when she was in the market for her first house, and says that was the one time the process made her nervous. She’d heard the myth that checking could affect her score, as well as several other untruths. 

“I checked it before applying for a mortgage in principle to determine whether I had a ‘good enough’ credit score to progress,” says Amy, a 25-year-old building surveyor.  

“In my opinion, credit scores aren’t discussed enough to allow people to be aware of the truths behind them. I’ve started to notice what areas contribute to a higher score, like staying with a bank for a long period or being on the electoral register.” 

Experian’s head of consumer affairs James Jones echoes the need for more understanding, and says losing the fear of the credit check is the most important thing. 

“It’s a real shame when people are put off checking their credit report because they fear the unknown or have been misled by one of the many urban myths about credit ratings,” he says. 

“Credit reports are important, and engaging with yours can often be beneficial. Many of Experian’s regular subscribers find ways to improve their credit scores – which can pay handsome dividends when they next apply for credit. You never know, you might be pleasantly surprised!”