Myth 1: Checking Your Credit Score Lowers It
Fact: Looking up your own credit score is counted as a “soft inquiry,” which has no negative effect. Only “hard inquiries” from new credit applications can slightly lower your score.
Myth 2: Higher Income Means a Higher Credit Score
Fact: Credit scores are based on your borrowing and repayment history—not your income. You can have a high income and a low score, or vice versa.
Myth 3: Closing Unused Credit Cards Improves Your Score
Fact: Closing a credit card may actually hurt your score by reducing your available credit and shortening your credit history. It’s better to keep old accounts open (unless there are high fees).
Myth 4: You Need to Carry a Balance to Build Credit
Fact: Carrying a balance is not required and only leads to interest charges. Making payments on time and keeping credit usage low are what really build your score.
Myth 5: All Credit Inquiries Hurt Your Score
Fact: Only hard inquiries (like applying for new credit) can cause a slight, temporary drop. Checking your own score or getting pre-approved offers (soft inquiries) doesn’t affect your score.
Myth 6: Debit Card Use Builds Your Credit
Fact: Debit card activity doesn’t appear on credit reports and does not impact your credit score. Only credit-based accounts count.
Myth 7: There Is Only One Credit Score
Fact: You have several credit scores—different bureaus often use different models, which is why scores can vary.
Myth 8: Closing a Credit Account Removes Its History
Fact: The account and its payment history remain part of your credit report for several years after closure.
Myth 9: Never Borrowing Guarantees a Perfect Credit Score
Fact: A lack of credit history can make it hard to get approved for loans, as lenders like to see responsible credit use.
Myth 10: Credit Scores Are Permanent
Fact: Credit scores update regularly and can change in response to your financial behavior. Good habits can rebuild a low score over time.
