Common Credit Score Myths You Should Stop Believing

Credit scores are more than just numbers—they affect your ability to borrow, rent, and even land certain jobs. Yet, many people make decisions based on false beliefs. Let’s bust the biggest credit score myths you should stop believing to keep your finances in top shape. 

Common Credit Score Myths You Should Stop Believing 

Misinformation about credit can do more harm than good. To build and maintain a healthy credit score, you need to know what actually counts. Below are 10 widespread myths that could be holding you back from achieving financial freedom. 

1. Checking Your Credit Lowers Your Score 

Only hard inquiries—like those from loan or credit applications—can affect your score. Soft inquiries, such as checking your own score, have no impact. In fact, regularly reviewing your credit can help catch errors early. 

2. You Only Have One Credit Score 

You actually have multiple scores, depending on the credit bureau (Equifax, Experian, TransUnion) and scoring model (FICO, VantageScore). Scores may vary, but the basics of what affects them remain consistent across the board. 

3. Closing Old Accounts Helps Your Score 

This can actually hurt your credit. Old accounts contribute to your credit history length, which impacts your score. Instead of closing them, keep them open and use them occasionally to keep them active. 

4. Carrying a Balance Improves Your Score 

You don’t need to carry a balance to build credit. In fact, it’s better to pay off your balance in full each month. Interest charges can pile up fast, and high utilization can lower your score. 

5. Income Affects Your Credit Score 

Your income isn’t factored into your credit score. What matters is how you manage your credit—like on-time payments, debt levels, and credit history—not how much money you make. 

6. Debit Card Use Builds Credit 

Using a debit card does not impact your credit score. Only credit products—like credit cards, loans, and lines of credit—are reported to credit bureaus and used in score calculations. 

7. Paying Off Debt Erases It Immediately 

Paying off debt is great, but it doesn’t remove it from your credit report right away. Closed accounts and paid-off debts can still show up for several years, especially if they had late payments. 

8. You Must Use Credit to Have a Good Score 

Yes, credit usage is necessary to build a score, but that doesn’t mean you need to be in debt. A single credit card, used responsibly, can build a solid credit history over time. 

9. Credit Repair Companies Can Instantly Fix Your Score 

No one can "instantly" fix your credit. Credit repair firms can dispute errors, but they can’t remove accurate, negative information. You can often do this work yourself—for free. 

10. Your Credit Score Doesn’t Matter That Much 

This myth is dangerous. Your credit score affects loans, insurance rates, rental applications, and even job offers. A good score can save you thousands over time and open major life opportunities. 

Believing in credit myths can keep you stuck in financial limbo. Now that we’ve debunked these Credit Score Myths You Should Stop Believing, you can take smarter steps toward improving your credit. Remember: knowledge is the key to financial empowerment. 

This article was previously published on omanmoments. To see the original article, click here