1. Introduction
Credit scores play a huge role in your financial life — from loan approvals to interest rates to even renting an apartment.
But with so much confusing information online, it’s easy to fall for myths that can hurt your credit instead of helping it.
Today, let’s break down the most common credit score myths and uncover what actually matters for a healthy credit score.
2. Myth 1: Checking Your Own Credit Score Will Lower It
Reality:
Checking your own credit score is considered a soft inquiry, which does not affect your score.
Only hard inquiries (like applying for loans, credit cards, etc.) impact it slightly.
Tip:
Check your score regularly to track improvements.
3. Myth 2: You Need to Carry a Balance to Improve Your Score
Reality:
This is completely false — you do not need to carry debt to build good credit.
In fact, the best strategy is:
- Use your credit card
- Pay the full balance each month
This shows responsible usage without interest charges.
4. Myth 3: Closing Old Credit Cards Boosts Your Score
Reality:
Closing old accounts often hurts your score because:
- It shortens your credit history
- It increases your credit utilization ratio
Unless the card has a high annual fee, keeping old accounts open is usually better.
5. Myth 4: Your Income Affects Your Credit Score
Reality:
Income is not part of your credit score.
Your score is based on your borrowing behavior, not your salary.
However, lenders may still check your income when approving loans.
6. Myth 5: Paying All Your Debt Immediately Fixes Your Score
Reality:
Paying off debt helps, but credit scores take time to update.
Depending on the lender, it may take 30–60 days for improvements to show.
Consistency is more important than speed.
7. Myth 6: Using a Debit Card Helps Build Credit
Reality:
Debit cards do not affect your credit score at all.
Only credit cards and loans help build credit history.
Use a credit card responsibly to build your score.
8. Myth 7: One Missed Payment Isn’t a Big Deal
Reality:
Even one late payment can drop your score, especially if it’s 30+ days late.
Payment history makes up 35% of your credit score, the highest factor.
Tip:
Set automatic payments or reminders.
9. Myth 8: Too Many Credit Accounts Hurt You
Reality:
Opening multiple accounts at once can cause temporary drops.
But having several well-managed accounts can actually help improve your score long-term.
Lenders like to see you can manage multiple lines of credit responsibly.
10. What Really Matters for Your Credit Score?
Here are the five main factors:
✔ 1. Payment History (35%)
Pay on time — this is the most important factor.
✔ 2. Credit Utilization (30%)
Use less than 30% of your credit limit.
✔ 3. Length of Credit History (15%)
Older accounts help your score.
✔ 4. New Credit / Hard Inquiries (10%)
Don’t apply for too many loans or cards at once.
✔ 5. Credit Mix (10%)
A combination of credit types (cards, loans) is beneficial.
11. Final Thoughts
Your credit score doesn’t have to be confusing — just avoid the myths and focus on what truly matters:
consistent payments, low balances, and responsible credit usage.
With steady habits, your credit score will improve naturally over time.
