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Your credit score is more than just a number — it plays a significant role in determining your financial opportunities, from getting approved for a mortgage to qualifying for low-interest credit cards. Yet, there’s no shortage of misinformation floating around. Misunderstanding how credit scores work can lead to bad decisions that hurt your financial standing.
Let’s clear up the confusion. Below are seven widespread myths about credit scores you should stop believing — and the facts that will help you make smarter choices.
1. Checking Your Own Credit Score Will Lower It
The Truth: Pulling your own credit report won’t affect your score.
Many people believe that simply viewing their credit report or score will harm it, but this is incorrect. When you personally check your credit — whether through a credit monitoring service or directly from the credit bureaus — it’s considered a soft inquiry, which doesn’t impact your score at all.
Only hard inquiries, typically from lenders evaluating your application for new credit, can slightly reduce your score. Even then, the effect is usually minor and temporary.
Tip: Monitoring your credit regularly is actually a smart financial habit. You're entitled to one free report each year from all three major bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com.
2. Keeping a Balance on Your Credit Cards Helps Your Score
The Truth: Carrying a balance doesn’t help — and may hurt your score.
There’s a common misconception that keeping an unpaid balance on your credit card month after month is a sign of good credit usage. In reality, this practice can increase your credit utilization ratio — the amount of credit you’re using compared to your total available limit — and potentially lower your score.
The best strategy is to pay off your credit card bill in full each month. This keeps your utilization low, shows responsible usage, and avoids interest charges.
Best practice: Aim to keep your utilization under 30%, but under 10% is ideal for optimal scoring.
3. Adding Someone with Good Credit Will Automatically Improve Yours
The Truth: Joint accounts or becoming an authorized user can be risky if misused.
While being added to an account held by someone with a solid credit history can improve your score, it’s not guaranteed. If that person misses a payment or carries high balances, those negative activities will reflect on your credit report as well.
Understanding the role you play matters:
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Authorized users benefit from the account’s history but aren’t legally responsible for the debt.
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Co-signers or joint account holders are fully liable and share the financial risks.
Tip: Only join accounts with people whose credit habits you fully trust.
4. Closing Credit Cards Helps Your Credit Score
The Truth: Closing old accounts can actually damage your score.
It may seem logical to close unused credit cards to simplify your finances or reduce the risk of fraud. However, closing a card can have two unintended consequences:
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Reduces your available credit, increasing your utilization ratio.
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Shortens your credit history, especially if the card is one of your oldest.
Both of these factors contribute significantly to your credit score.
Advice: Keep older, no-fee cards open and use them occasionally to keep the account active. Consider downgrading cards with annual fees rather than closing them.
5. You Have Just One Credit Score
The Truth: You likely have dozens of credit scores.
Many people are surprised to learn they don’t have a single, universal credit score. Instead, there are multiple scoring models, such as FICO and VantageScore, and each model may have different versions tailored for specific lenders (e.g., for auto loans or mortgages).
Furthermore, each credit bureau may report slightly different information, leading to score variations.
Bottom line: Focus on understanding the general factors that influence your score, rather than getting caught up in minor differences between models.
6. Negative Information Can Be Removed Instantly
The Truth: Most derogatory marks stay on your report for years.
There’s a whole industry built around "credit repair" services that claim they can erase bad credit overnight. In reality, negative marks — such as late payments, charge-offs, collections, or bankruptcies — have specific timelines for how long they remain on your credit report:
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Late payments: 7 years
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Collections: 7 years (plus 180 days from the original delinquency)
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Bankruptcies: 7–10 years, depending on the type
While legitimate errors can be disputed and removed, accurate negative information will remain for the duration.
Avoid scams: Be wary of companies promising fast fixes. Only incorrect or fraudulent data can be removed early through formal dispute processes.
7. A High Income Means a High Credit Score
The Truth: Income isn't factored into your credit score at all.
It may be surprising, but your salary, job title, or the size of your bank account has no direct bearing on your credit score. Credit scores are based solely on how you manage credit, not how much money you make.
That means:
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You can earn a high income and still have a poor score if you’re consistently late on payments or max out your cards.
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Conversely, someone with a modest income can have excellent credit by paying bills on time and keeping balances low.
Key takeaway: Good financial habits, not earnings, determine your score.
Why These Myths Matter
Falling for these credit score myths can lead to poor financial decisions:
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Paying interest unnecessarily
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Closing helpful accounts
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Applying for credit at the wrong time
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Over-relying on someone else’s good credit
Understanding how your credit really works empowers you to improve your financial health — and your opportunities for better loans and lower interest rates.
How to Actually Improve Your Credit Score
Knowing what not to do is only part of the battle. Here are the most effective, fact-based strategies for boosting and maintaining a great score:
✅ 1. Always Pay On Time
Your payment history is the most important factor in your credit score. Even a single missed payment can significantly impact your rating.
Pro tip: Set up auto-pay for at least the minimum to avoid late fees and score damage.
✅ 2. Keep Balances Low
High credit utilization can drag your score down. Try to keep your total balances below 30% of your available credit, and under 10% if you're aiming for excellent credit.
Hack: If you’re using a card frequently, make multiple payments throughout the month.
✅ 3. Use Credit, But Don’t Abuse It
Regularly using your credit cards and paying them off shows you're responsible — but racking up big balances each month isn’t necessary.
✅ 4. Hold On to Old Credit Cards
Long-standing accounts demonstrate a history of responsible credit use, which works in your favor.
✅ 5. Mix Up Your Credit Types
Having a variety of accounts — such as a credit card, auto loan, and personal loan — shows lenders you can manage different forms of debt.
But don't open new accounts just to diversify. Only borrow when you need to.
✅ 6. Limit New Credit Applications
Too many hard inquiries in a short period can signal risk to lenders. Be strategic about when and why you apply.
Exception: Rate shopping (e.g., for a mortgage) within a 14-45 day window is typically counted as one inquiry.
✅ 7. Monitor Your Reports for Errors
Mistakes on your credit report can drag your score down unfairly. Check your reports regularly and dispute any inaccuracies immediately.
Common Missteps to Avoid
Here are some pitfalls that often result from following myths:
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Carrying a balance just to “help your score” — unnecessary and costly.
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Closing old accounts in an effort to “clean up” your credit.
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Applying for too many cards at once, chasing sign-up bonuses.
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Assuming your partner’s score will save you in a joint application.
These well-meaning actions can do more harm than good.
Final Thoughts: Knowledge Beats Guesswork
Understanding your credit score is essential to financial freedom. It determines not only your borrowing power but also the cost of borrowing — and even your ability to rent an apartment or get certain jobs.
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