Credit scores are widely accepted as reliable indicators of personal or business financial reliability. Banks look at credit scores when deciding whether or not to approve a loan or mortgage request. Landlords are more likely to rent their premises to someone with a good credit score. Employers might even decide not to proceed with a job candidate if they see their credit score is low.

Credit scores have developed their own mystique, with a number of misconceptions widely believed.

Myth 1: Only the Financially Irresponsible Get Low Credit Scores

While bankruptcy, defaults on loans and tardiness in keeping up payments certainly lead to low credit scores, not everyone with a low score has been mismanaging their finances.

Two common examples of people who can get low credit stores through no fault of their own are young people, and anyone who has not used a credit line for a long time. In both these the credit bureaus find themselves lacking the credit history information they use to calculate scores. Unless someone has a proven record of financial dependability the bureau must give them the highest risk rating i.e. a low credit score.