Your credit score is a number that tells lenders how reliably you’ve managed borrowed money. It affects your ability to get a loan, a credit card, a mortgage — and how high your interest rates will be.
Because it’s so important, many myths and misconceptions swirl around credit scores. These myths can lead you to make poor decisions, or to think you’re doing the right thing when you’re not.
In this article, we’ll bust nine common credit score myths that many people believe — and explain what really matters when it comes to your credit health.
Myth #1: Checking Your Own Credit Score Hurts It
One of the most widespread myths is that by simply looking at your credit score, you’ll damage it. Let’s break this down:
- There are two types of credit inquiries: a soft inquiry and a hard inquiry. A soft inquiry happens when you check your own credit report or score, or when a lender pre-approves you. These do not affect your credit score.
- A hard inquiry happens when a lender checks your credit for a new application, like a credit card or loan — and this can impact your score slightly for a short time.
- So: Checking your own credit score is safe, and in fact it’s smart. It lets you monitor your credit, catch errors, detect fraud, and see where you stand.
Myth #2: You Need to Carry a Balance to Build Credit
Many people believe “I must keep a balance on my credit card so my credit score goes up.” That’s not true — in fact, it can hurt.
- Carrying a balance means you’re paying interest and you’re increasing your credit utilization (how much of your available credit you’re using). High usage = negative.
- What the scoring models favor is paying off your full balance monthly, keeping your usage low, and showing responsible behaviour.
- The credit-utilization ratio is key. If you have a credit limit of $5,000 and a balance of $3,000, your utilization is 60% — that’s higher than ideal. Lower utilization (say under 30%) helps your score.
So the myth “I have to carry a balance” is backwards — you can carry no or low balance and still build or maintain excellent credit.
Myth #3: Closing Old Credit Cards Improves Your Score
You might think: “I don’t use this old card, so I’ll close it—then my credit score will go up.” Actually, closing a long-standing account can reduce your credit health in some ways. Here’s why:
- One factor in your credit score is the age of your credit history. Older accounts show longer track record and that’s good.
- Another is your credit utilization ratio — if you close a card, you reduce your total credit limit, which can raise your utilization ratio (assuming the same balances).
- That doesn’t mean you never close a card. If the card has a high annual fee you don’t use, or you suspect fraud, you might close it — but do so with awareness.
Myth #4: Your Income Directly Affects Your Credit Score
This one trips up a lot of people. They believe: “If I earn more, my credit score will go up.” Not exactly. Here’s what’s correct:
- Your income is not a factor in most credit-score calculations. The scoring models (like FICO or VantageScore) look at your payment history, amounts owed, length of history, new credit, and credit mix — not how much you earn.
- That said, income does matter to lenders when you apply for new credit — because they assess whether you can afford repayments.
- So: whilst a higher income might indirectly help you by enabling you to keep balances low or avoid missed payments, it doesn’t directly count in the score.
Reminder: Focus on what the scoring models actually measure, not your earnings.
Myth #5: Paying Off Debt Immediately Fixes a Bad Score
You may think: “I just paid off all my debt — my credit score will rocket up tomorrow!” That’s not always the case.
- Good news: paying off debt is very helpful. But your score won’t bounce up instantly. Many factors update slowly (payment history, age of accounts) and it takes consistency.
- Even after paying off debt, you want to keep using credit responsibly: pay on time, keep utilization low, don’t open and close accounts rapidly.
- Recovery from credit damage is a marathon, not a sprint. One‐time actions matter, but ongoing behaviour matters more.
Tip: Make a plan to keep good habits going for months (or years) and you’ll see gradual score improvements.
Myth #6: Using a Debit Card Helps Build Credit
Another frequent misconception: “I use my debit card a lot — that’s building my credit.” Unfortunately, no.
- Debit cards draw from your bank account. They don’t usually report usage into the credit-reporting bureaus, so they don’t build your credit score.
- If you want to build credit, you’ll want to use a regular (or secured) credit card, pay on time, maintain low balances. Alternatively, consider a credit-builder loan.
Myth #7: You Only Have One Credit Score
Many believe there’s a single credit score that everyone uses. Actually:
- There are multiple scoring models (FICO, VantageScore, and variations of both). These models draw on similar data but weight factors differently.
- Also, the version a lender uses may vary (for auto loans, mortgages, credit cards). That’s why your score might look different on different platforms.
- So: Don’t fixate on the number you see in one app; use it as a guide and focus on the underlying behaviours (payment, utilization, age).
Myth #8: All Debt Is Bad for Your Credit
There’s a belief that any debt automatically hurts your credit. That’s an oversimplification.
- Debt isn’t inherently bad — it depends on how you manage it. For example, a small car loan or mortgage can show you’re capable of handling instalment debt responsibly.
- The worse scenario is unmanaged debt: high balances, missed payments, maxed-out cards. That will hurt your credit.
- Good debt + responsible habits = can help your credit. Bad debt + poor habits = will definitely hurt.
Reminder: Focus on how you handle debt, not just whether you have it.
Myth #9: Once You Have Good Credit, You Don’t Need to Worry
You might think: “Great — I reached a high credit score. I can relax now.” Actually, your work isn’t done just because you reached a milestone.
- Credit scores fluctuate. Life events (job loss, medical bills, new debt) can affect your score.
- Scoring models update as new data comes in. If you stop paying attention, your score can degrade over time.
- Ongoing habits matter: paying on time, keeping utilization low, avoiding unnecessary credit applications, checking for errors in reports.
Stay vigilant. Good credit is maintained, not guaranteed forever.
Visual: Credit Score Snapshot
6Here are a few useful visuals:
- The average credit score in the U.S. was about 715 in 2023, which falls into the “good” range.
- One pie-chart shows how credit scores are distributed: ~21% “exceptional” (800+), ~28% “very good” (740-799), ~22% “good” (670-739), ~16.6% “fair” (580-669), ~12.1% “poor” (below 580).
- Another shows how scoring models break down factors: payment history ~35%, amount owed ~30%, length of history ~15%, new credit ~10%, credit mix ~10%.
These visuals help ground the myths in real data — understanding trends makes it easier to spot what’s true and what’s not.
Bonus Tips: How to Maintain a Healthy Credit Score
Here are some practical steps you can take to keep your credit score in good shape:
- Regularly check your credit report for errors or unfamiliar accounts.
- Keep your utilization ratio below 30% — ideally below 10 % if you can.
- Set payment reminders or use automatic payments so you never miss due dates.
- Avoid applying for new credit unless necessary, since multiple hard inquiries in a short period may impact your score.
- Keep older accounts open (if they cost nothing) to maintain credit-age benefits.
- Use your credit card(s) lightly each month and pay off the full balance.
- Track your progress — use one of the free or paid credit-score tracking tools to monitor how your behaviours affect your score.
Conclusion
Credit scores matter. But so do what you believe about them. Myths—like thinking you must carry a balance, or that checking your own score hurts you—can mislead you into making mistakes.
By busting these nine myths, you’re better equipped to act smart: monitor your report, pay on time, keep your balances low, maintain older accounts, and avoid needless new credit.
If you’re ready to take control of your credit health, start today: check your credit report, review your credit cards, set up a payment plan. Good credit isn’t just achieved—it’s maintained.
Motivational CTA: “Check your credit score today and start improving it the right way.”
FAQs
- Does checking my credit score hurt my credit?
No. Checking your own score is a soft inquiry and does not lower your credit score. - Do I need to carry a balance on my credit card to build credit?
No. Paying your full balance monthly and keeping utilization low helps your score more than carrying debt. - Will closing an old credit card improve my credit score?
Usually no — closing an old card can reduce your average account age and total available credit, which might hurt your score. - Does my income affect my credit score?
No. Your income isn’t part of most scoring models. However, lenders do look at income when you apply for new credit. - If I pay off all debt today, will my credit score bounce to a perfect score?
Not instantly. While paying off debt is excellent, your credit score reflects longer-term behaviour and may take time to improve. - Can using a debit card help build my credit?
No. Debit card use generally doesn’t appear on credit reports. Using a credit card responsibly is better for building credit. - Is there only one credit score for me?
No. There are multiple scoring models (like FICO and VantageScore) and each may produce a different number. - Is all debt bad for my credit?
Not necessarily. Responsible debt (with timely payments and low balances) can actually help show you’re credit-worthy. Poorly managed debt is what hurts. - Once I reach a good credit score, do I need to keep working at it?
Yes. Credit scores can fluctuate. You’ll need to keep good habits over time to maintain your score. - What’s a good credit score range?
According to Experian, a “good” credit score is roughly 670-739. Very good is 740-799; exceptional is 800+.
Disclaimer
This article is for educational purposes only and does not constitute financial or lending advice. Credit-score models, credit-reporting practices and terms may vary by country, lender or bureau. Always consult a qualified financial advisor or credit-counsellor for personalised advice based on your individual financial profile.
