The Biggest Credit Myths You Need to Stop Believing
Credit is one of the most misunderstood parts of personal finance. Between rumors, outdated advice, and internet “hacks,” it’s easy to fall for myths that can actually hurt your credit instead of helping it.
If you want to build and maintain a healthy financial future, it’s time to separate fact from fiction. Here are some of the biggest credit myths you need to stop believing.
Myth #1: Checking Your Own Credit Hurts Your Score
The Truth: When you check your own credit report or score, it’s considered a soft inquiry and it does not affect your score. Only hard inquiries (like when a lender checks your credit for a loan or credit card application) can have a temporary impact.
Regularly checking your credit report is actually a smart move to catch errors and track your progress.
Myth #2: You Need to Carry a Balance to Build Credit: The Biggest Credit Myths You Need to Stop Believing
The Truth: Carrying a balance and paying interest does nothing to help your score. What matters is that you use credit responsibly and pay on time. In fact, the best way to build credit is to pay off your balance in full each month.
Carrying debt only costs you money it doesn’t improve your credit.
Myth #3: Closing Old Accounts Improves Your Score
The Truth: Closing an old credit card can actually hurt your score. That’s because it may shorten your credit history and reduce your overall available credit, which can increase your utilization ratio.
If an old card doesn’t have fees, keep it open even if you rarely use it.
Myth #4: Your Income Affects Your Credit Score
The Truth: Your salary isn’t part of your credit score calculation. While lenders do consider income when deciding whether to approve you for credit, your score is based solely on how you’ve handled debt things like payment history, balances, and credit age.
High income with bad credit = high risk. Low income with good credit = responsible borrower.
Myth #5: One Late Payment Won’t Hurt That Much
The Truth: Even a single late payment can have a big impact, especially if your credit is otherwise good. Payment history makes up 35% of your FICO score the largest factor.
Always pay at least the minimum on time to protect your score.
Myth #6: You Only Have One Credit Score: The Biggest Credit Myths You Need to Stop Believing
The Truth: You actually have dozens of scores. Different scoring models (FICO, VantageScore) and different versions within those models can produce slightly different numbers. Plus, each credit bureau (Experian, Equifax, TransUnion) may have different data.
Don’t stress over one exact number focus on maintaining overall healthy credit habits.
Myth #7: Bad Credit Lasts Forever: The Biggest Credit Myths You Need to Stop Believing
The Truth: Negative marks like late payments, collections, or bankruptcies won’t stay on your report forever. Most fall off after seven years, and a bankruptcy after up to 10 years. Better yet, their impact lessens over time if you build positive credit behavior.
Credit is always repairable with consistency and time.
Final Thoughts on The Biggest Credit Myths You Need to Stop Believing
Believing myths about credit can cost you opportunities, money, and peace of mind. The reality is simple: pay on time, keep balances low, avoid unnecessary debt, and check your reports regularly. Do that, and your credit will take care of itself.
Remember: credit is a tool not a trap. The better you understand how it works, the more it will work in your favor.
