There’s a lot of misinformation about credit scores floating around. Some people believe that checking your own credit will hurt your score, while others think that closing old credit cards improves your rating.
The truth? Many common beliefs about credit scores are actually myths—and falling for them could hurt your financial future.
In this guide, we’ll debunk the top credit score myths and reveal what really impacts your credit rating.
1. Myth: Checking Your Credit Lowers Your Score
Fact: Checking your own credit does NOT hurt your score!
There are two types of credit inquiries:
✔️ Soft inquiries – When you check your own credit (harmless).
❌ Hard inquiries – When a lender checks your credit for a loan or credit application (may lower your score slightly).
👉 Reality: You can check your own credit as often as you want with no impact. Use AnnualCreditReport.com to monitor your score for free!
2. Myth: Closing Old Credit Cards Helps Your Score
Fact: Closing an old credit card can actually hurt your score.
Closing an account may:
🔹 Reduce your credit history length (15% of your score).
🔹 Increase your credit utilization ratio (if you lose available credit).
👉 Reality: Keep old accounts open, especially if they have a long history and no annual fees.
3. Myth: You Need to Carry a Balance to Build Credit
Fact: Carrying a balance isn’t necessary to build credit—and it can cost you in interest!
What actually matters?
✔️ Using credit responsibly (keeping balances low).
✔️ Making payments on time.
👉 Reality: Pay your full balance each month to avoid interest and maintain a strong score.
4. Myth: Paying Off Debt Removes It from Your Credit Report
Fact: Paying off debt doesn’t erase it from your credit history.
Negative marks like:
❌ Late payments – Stay for 7 years.
❌ Bankruptcies – Stay for 7–10 years.
❌ Closed accounts – Can stay for 10 years.
👉 Reality: While paying off debt stops future damage, it doesn’t erase past negatives instantly. However, over time, their impact fades!
5. Myth: Your Income Affects Your Credit Score
Fact: Your income has zero direct impact on your credit score!
Your credit score is based on:
📊 Payment history (35%) – Do you pay on time?
📊 Credit utilization (30%) – How much of your available credit are you using?
📊 Credit age (15%) – How long have you had credit?
📊 Credit mix (10%) – Do you have different types of credit?
📊 New credit inquiries (10%) – Have you applied for too much credit recently?
👉 Reality: Even if you make $1 million a year, missing payments or maxing out your credit cards will hurt your score.
6. Myth: All Credit Scores Are the Same
Fact: There are multiple types of credit scores!
The most common are:
✔️ FICO Score – Used by 90% of lenders.
✔️ VantageScore – Used by some banks and apps like Credit Karma.
👉 Reality: Your score may vary slightly depending on which model is used, but the same financial habits improve all credit scores.
7. Myth: Applying for a New Credit Card Always Lowers Your Score
Fact: A hard inquiry from a credit card application may lower your score by 5–10 points, but the impact is temporary.
If used responsibly, a new card can help by:
✔️ Increasing your available credit (lowering your utilization ratio).
✔️ Diversifying your credit mix.
👉 Reality: If you space out applications (every 6 months or more), your score will recover quickly.
8. Myth: Debit Cards Help Build Credit
Fact: Debit card usage does NOT impact your credit score.
Only credit-related accounts (credit cards, loans, etc.) are reported to the credit bureaus.
👉 Reality: If you want to build credit, consider a secured credit card or credit-builder loan instead of relying on debit transactions.
9. Myth: You Can Pay to Erase Bad Credit Overnight
Fact: Any company that promises “instant credit repair” is likely a scam.
While legitimate credit repair services can help dispute errors, removing accurate negative marks takes time.
👉 Reality: Be patient and focus on long-term habits—credit scores improve with consistent good behavior.
10. Myth: Credit Scores Don’t Matter If You’re Not Borrowing Money
Fact: Even if you don’t plan to borrow, a bad credit score can still cost you.
A low score can:
💰 Increase insurance premiums.
🏠 Make renting an apartment harder.
⚡ Affect utility deposits.
💼 Impact job applications (some employers check credit reports).
👉 Reality: A good credit score gives you more financial freedom—even if you don’t plan to take out loans!
Know the Truth About Credit Scores
Believing credit score myths can hold you back financially. Now that you know the truth, you can make better decisions to improve your score!
🎯 Quick Recap:
✅ Checking your credit doesn’t hurt your score.
✅ Closing old accounts can lower your score.
✅ Carrying a balance isn’t necessary to build credit.
✅ Your income doesn’t impact your score.
✅ You can’t erase bad credit overnight—be patient!
📞 Need help improving your credit? Contact Credit Restore Lab for a FREE consultation today!
CreditRepair #CreditScoreMyths #FixCreditScore #IncreaseCreditScore #CreditEducation #ImproveCreditScore #FinancialHealth #CreditUtilization #PaymentHistory #RebuildCredit #CreditFacts #CreditScoreBoost #BadCreditFix #RaiseCreditScore #CreditRepairServices