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....