Credit Score Myths, Debunked

There is a lot of misinformation out there when it comes to credit scores. Let’s clear up some common myths and explain what actually matters when it comes to building and maintaining good credit. 

1. Checking your own credit hurts your score
   False. Checking your own credit is a soft inquiry and does not affect your score 
2. You need to carry a balance to build credit
   False. Paying your balance in full each month helps your score and avoids interest.
3. Closing old accounts improves your score
   Often false. Closing accounts can shorten your credit history and raise your credit usage. 
4. Income affects your credit score
   False. Income is not included in credit score calculations. 
5. Debit cards help build credit
   False. Debit card activity is not reported to credit bureaus. 
6. All debt is bad for your credit
   False. Responsible credit use with on time payments can help build a strong score. 
7. Paying off a loan makes your score drop permanently
   False. Any drop is usually temporary if you continue good credit habits. 
8. You only have one credit score
   False. There are multiple credit scores depending on the scoring model and lender. 
9. Late payments do not matter if you catch up quickly
   False. Late payments can still impact your score even if paid soon after. 
10. Credit repair companies can instantly fix your score
    False. Improving your score takes time and consistent behavior.