A credit score plays a vital role in shaping your financial future—from loan approvals and credit card applications to housing and job opportunities. Yet, despite its significance, the topic is often misunderstood. Misinformation, outdated advice, and internet myths can leave consumers confused or even misled.
Let’s clear the air. Here are 10 of the most common credit score myths—debunked with facts, not fiction.
1. Myth: Checking Your Credit Score Will Hurt It
Fact: Checking your own credit score is considered a soft inquiry and does not impact your score.
Many people avoid checking their credit reports out of fear it might lower their score. However, monitoring your credit is one of the best ways to detect fraud, track your financial progress, and stay in control. Only hard inquiries—typically done by lenders when you apply for credit—may affect your score slightly.
2. Myth: You Need to Carry a Balance to Build Credit
Fact: You can build excellent credit without ever carrying a balance.
Carrying a balance does not help your score—it only costs you money in interest. Credit scoring models favor those who pay their balances in full and on time. What matters more is your credit utilization ratio—how much of your available credit you’re using.
3. Myth: Closing a Credit Card Helps Your Score
Fact: Closing a credit card can actually hurt your credit score.
While it might seem responsible to close unused accounts, doing so may reduce your available credit and shorten your credit history—two factors that impact your score. If a card has no annual fee, consider keeping it open to maintain a longer credit history and better utilization ratio.
4. Myth: Income Affects Your Credit Score
Fact: Your income is not included in your credit score calculation.
Credit scores are based on your credit behavior—not your salary. While lenders may consider your income during a loan or card application, it has no direct bearing on your actual score. Your payment history, outstanding debt, and credit history length are more influential.
5. Myth: All Credit Scores Are the Same
Fact: There are many different credit scoring models.
The two most common are FICO® and VantageScore®, but even within these systems, there are multiple versions. Additionally, scores may vary depending on the credit bureau (Equifax, Experian, or TransUnion). That’s why your score may differ slightly depending on where you check it.
6. Myth: Paying Off Debt Instantly Improves Your Score
Fact: Paying off debt is beneficial, but the score boost may not be immediate.
Credit bureaus update their data once creditors report it, which usually takes 30-45 days. Additionally, the type of debt matters. Paying off revolving credit (like credit cards) often improves scores faster than paying off installment loans (like student loans).
7. Myth: Medical Debt Doesn’t Affect Your Credit Score
Fact: Unpaid medical bills can hurt your credit if sent to collections.
While recent changes have minimized the impact of small medical debts, unresolved medical collections can still affect your score. It’s essential to communicate with healthcare providers, negotiate payments, or set up plans to avoid collection agency involvement.
8. Myth: Married Couples Share One Credit Score
Fact: Credit scores are individual—not shared—even after marriage.
Each person maintains their own credit file, even if finances are joint. However, applying for a loan together (like a mortgage) will involve both credit histories, and one partner’s score can affect the terms you receive.
9. Myth: A Poor Credit Score Is Permanent
Fact: Credit scores are fluid and can be improved over time.
With consistent on-time payments, reduced credit utilization, and responsible financial behavior, it’s entirely possible to raise your score significantly—even after past mistakes. Negative items like late payments and collections drop off your report after 7 years in most cases.
10. Myth: Only Debt Impacts Credit Score
Fact: Your credit score reflects a variety of factors beyond just debt.
While outstanding debt is important, scoring models also weigh payment history, length of credit history, types of credit used, and recent credit inquiries. Managing all of these areas responsibly is the key to a strong credit score.
Why These Credit Score Myths Matter
Believing credit score myths can lead to poor financial decisions, higher interest rates, and missed opportunities. Understanding the truth empowers you to take control of your financial reputation and make smarter choices.
With identity theft, data breaches, and algorithmic lending on the rise, keeping your credit in top shape is more important than ever.
How to Monitor and Improve Your Credit Score
Here are a few actionable steps you can take today:
-
Check your credit report regularly at AnnualCreditReport.com (free weekly reports through 2026).
-
Set up auto-pay for credit cards and loans to avoid missed payments.
-
Keep credit utilization under 30% of your available limit.
-
Avoid unnecessary hard inquiries when applying for new credit.
-
Dispute errors on your credit report as soon as you spot them.
Final Thoughts on Credit Score Myths
Navigating the world of credit can be overwhelming, but separating fact from fiction is half the battle. By understanding how credit scores really work—and ignoring the myths—you’ll be better positioned to improve your financial future.
Don’t let outdated advice or hearsay control your money moves. Stay informed, stay proactive, and let the numbers work in your favor.