If there’s one thing that has a direct say in whether you get approved for a mortgage, a car loan, a credit card, or even an apartment rental in the U.S., it’s your credit score. Yet, despite how important it is, so many people are walking around believing half-truths and outright myths about how credit scores work.
And here’s the thing: these myths don’t just make you confused—they can actively hurt your finances.
Join me as we bust 7 of the most common credit score myths and replace them with real, actionable advice you can start using right now. Whether you’re 18 and just starting your credit journey, in your 30s buying your first home, or in retirement keeping your financial life healthy, these truths apply to you.
Myth #1: Checking Your Credit Score Will Lower It
The truth:
Ever heard someone say, “Don’t check your credit too often—it’ll drop!”?
That’s only half-true.
There are two types of credit checks: soft inquiries and hard inquiries.
- Soft inquiry: Happens when you check your own credit score, or when a lender pre-approves you. This has zero effect on your score.
- Hard inquiry: Happens when you formally apply for a loan or credit card. This can slightly lower your score for a short period.
Real-life example:
Imagine you log into a free app like Credit Karma or your bank’s app to see your score. That’s a soft pull—it’s like looking at your own report card. It doesn’t change your grade.
Task for you today:
Check your credit score now. If you haven’t looked at it in the last 3 months, go ahead—knowledge is power.
Myth #2: You Need to Carry a Balance to Build Credit
The truth:
This is one of the biggest money traps out there. Carrying a balance doesn’t help your score—it just costs you interest. The best way to build credit is to use your card and pay it off in full every month.
Relatable example:
It’s like telling yourself you have to leave dirty dishes in the sink for your kitchen to look “lived-in.” Nope. Clean it up, keep it fresh, and you’ll be better off.
Myth #3: Closing Old Accounts Will Boost Your Score
The truth:
Closing an old credit account can actually hurt your score because it affects your credit history length and credit utilization ratio.
Quick example:
If you have a credit card from college that you’ve had for 10 years, closing it can instantly shorten your credit history, which lenders view as risky.
Pro tip:
If there’s no annual fee, keep your oldest accounts open—even if you rarely use them.
Myth #4: All Debt Hurts Your Credit Score
The truth:
Not all debt is “bad” debt in the eyes of credit scoring. A healthy mix of debt—like having both a credit card and an auto loan—can actually improve your score, as it shows you can handle different types of credit.
Relatable example:
It’s like your diet—you don’t cut out every carb, you just eat the right ones.
Myth #5: A High Income Guarantees a High Credit Score
The truth:
Your income is not factored into your credit score at all. Your score is based on your credit behavior—payment history, amounts owed, length of history, new credit, and credit mix.
Day-to-day example:
You could earn $200,000 a year and still have bad credit if you constantly miss payments. And you could earn $40,000 and have perfect credit if you manage it well.
Myth #6: You Can Fix Your Credit Overnight
The truth:
Improving your credit score is more like running a marathon than a sprint. Quick fixes and “credit repair hacks” often don’t work—or worse, they can backfire.
What works:
- Paying bills on time, every time
- Reducing your credit utilization below 30%
- Keeping old accounts open
- Disputing errors on your report
Myth #7: Only People With Bad Credit Need to Worry About Their Score
The truth:
Even if your score is excellent today, it can drop fast if you stop paying attention. Life changes—like job loss, illness, or unexpected bills—can affect anyone.
Example:
Think of your credit score like your health. Just because you feel good now doesn’t mean you can skip your check-ups.
Action step:
Set a reminder to check your credit every quarter. That’s just 4 times a year, and it could save you thousands in interest.
Finally: Don’t Let Myths Mess With Your Money
Your credit score is more than a number—it’s a financial passport. Believing the wrong things about it is like following a faulty GPS: you could end up way off track.
Here’s the takeaway: Know the facts, apply them, and keep learning. The more informed you are, the more control you have over your financial future.
💬 Let’s talk in the comments:
Which of these myths have you believed in the past? Did you ever make a money move that hurt your score without realizing it? Share your story—I’d love to hear it!
