Your credit score affects everything from loan approvals to apartment rentals—but there’s a lot of misinformation out there. Let’s clear up some of the most common myths so you can make smarter financial choices.
Myth 1: Checking Your Credit Score Hurts It
False. When you check your own credit (called a “soft inquiry”), it has no impact on your score. Only “hard inquiries”—like when you apply for a loan or credit card—can slightly affect your score.
So go ahead and monitor your credit regularly. It’s smart and responsible.
Myth 2: Closing Old Credit Cards Improves Your Score
Actually, closing a long-standing credit card can hurt your score. Why? It shortens your credit history and reduces your available credit—two important factors in your score.
Instead of closing cards, consider keeping them open with occasional small charges paid off each month.
Myth 3: Carrying a Balance Helps Your Credit
This is a common misunderstanding. Carrying a balance and paying interest doesn’t improve your score. It’s better to pay your balance in full each month. What helps your score is using credit responsibly and keeping your utilization low (ideally under 30%).
Conclusion
Understanding how credit scores really work can save you money, reduce stress, and open doors to better financial opportunities. Don’t let myths hold you back—educate yourself and take control.
