7 Credit Score Myths That Are Killing Your Finances
Published by Speed Credit
Table of Contents
- Myth #1: Checking Your Credit Hurts Your Score
- Myth #2: You Need to Carry a Balance to Build Credit
- Myth #3: Paying Off Debt Erases It from Your Credit Report
- Myth #4: Closing Unused Credit Cards Helps Your Score
- Myth #5: Your Income Affects Your Credit Score
- Myth #6: You Only Have One Credit Score
- Myth #7: Credit Repair Companies Can Erase Negative Info
- Next Up: Why Closing a Credit Card Can Hurt You More Than You Think
Myth #1: Checking Your Credit Hurts Your Score
Truth: Only hard inquiries hurt your score. When YOU check your own credit, it’s a soft pull—no damage done. In fact, reviewing your credit often is smart and safe.
Myth #2: You Need to Carry a Balance to Build Credit
Truth: You do not need to carry debt to build credit. What matters is that you use your card and pay it off—on time. Carrying a balance means paying interest for no reason.
Myth #3: Paying Off Debt Erases It from Your Credit Report
Truth: Paying off a loan or card doesn’t delete it—it shows up as paid and stays on your report (which is good!). Paid accounts with good history help your score.
Myth #4: Closing Unused Credit Cards Helps Your Score
Truth: Closing a card can actually lower your score by increasing your utilization and shortening your credit history. It’s often better to keep the card open (and active once in a while).
Myth #5: Your Income Affects Your Credit Score
Truth: Credit scores don’t care how much money you make. They only reflect how you handle credit—not how rich or broke you are.
Myth #6: You Only Have One Credit Score
Truth: You have **dozens** of credit scores. FICO, VantageScore, auto scores, mortgage scores—they all calculate differently. What you see on apps like Credit Karma isn’t what lenders see.
Myth #7: Credit Repair Companies Can Erase Negative Info
Truth: If it’s accurate, it stays. No one can “magically” delete legit bad marks. You can dispute errors yourself—for free—at AnnualCreditReport.com.
Next Up: Why Closing a Credit Card Can Hurt You More Than You Think
Think canceling your old cards is a good thing? Think again. Up next, we’ll break down the truth behind why closing a credit card can actually drop your score.
