5 Common Credit Myths That Could Hurt Your Finances

Credit can be confusing—and unfortunately, many people believe myths that actually damage their credit scores. In this article, we’ll debunk five of the most common credit myths and set the record straight.

1. Checking your credit score hurts your credit

False. When you check your own credit (called a “soft inquiry”), it has no impact on your score. Only “hard inquiries” from lenders affect it—and even then, only slightly.

2. Carrying a balance helps your score

Wrong. You don’t need to carry a balance to build credit. In fact, carrying debt means you’re paying interest unnecessarily. Paying in full is healthier for your score and your wallet.

3. Closing a credit card improves your credit

Not always. Closing a card can lower your available credit, raising your utilization rate—and possibly hurting your score. It may also reduce the age of your credit history.

4. You only have one credit score

Nope. You have multiple scores based on different models (FICO, VantageScore) and different credit bureaus. Each may vary slightly based on data and formula.

5. Paying off a negative account removes it immediately

Unfortunately, no. Paying off collections or charge-offs doesn’t erase them. They can remain on your report for up to 7 years—but their impact lessens over time.

Final Thoughts

Believing the wrong things about credit can cost you money and opportunities. Stay informed, track your credit, and focus on responsible financial behavior—not rumors.

Infographic showing 5 common credit myths: checking your score hurts credit, carrying balance helps, closing credit cards improves score, you only have one score, paying bad debt deletes record



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