Your credit score can feel like a shadowy figure lurking in the background…
Always there, silently judging you. But what’s even scarier? The credit score myths that just won’t die. These credit score myths can keep you stuck in fear and stop you from building financial clarity.
From carrying a balance on your credit card to thinking checking your score will hurt it, these myths can keep you trapped in fear and confusion. Let’s shine a light on the biggest ones and set the record straight.
Myth #1: Carrying a Balance Improves Your Credit Score
One of the most common credit score myths is that you should leave a small balance on your credit card each month. The truth? Carrying a balance only costs you interest. What matters most is your credit utilization ratio, how much of your available credit you’re using.
👉 If you’re focused on improving your credit score, aim to keep your usage under 30% (and under 10% if possible) for the best results.
Myth #2: Closing Old Accounts Boosts Your Score
It feels logical — fewer accounts, better credit, right? Wrong. Closing old accounts can actually shorten your credit history and increase your utilization ratio. Unless there’s a high annual fee you don’t want to pay, it’s often better to leave old accounts open.
This is one of the most overlooked credit score mistakes people make, because it feels like the “responsible” thing to do.
Myth #3: Checking Your Credit Score Hurts It
This one’s truly haunting. A “hard inquiry” from a lender can cause a small, temporary dip in your score. But when you check your own score through apps or your bank, it’s a soft inquiry, it has zero impact on your credit.
This one’s truly haunting. A “hard inquiry” from a lender can cause a small, temporary dip in your score. But when you check your own score through apps or your bank, it’s a soft inquiry — it has zero impact on your credit.
👉 The CFPB explains more about what a credit score really is.
💡 In fact, monitoring your credit is one of the smartest ways to protect yourself from fraud and keep improving your credit score over time.
Myth #4: Your Credit Score Defines Your Financial Health
While your credit score is important, it’s not the full story. It doesn’t show how much you’re saving, how well you’re investing, or whether you’re on track with your financial goals.
Don’t let this myth spook you into thinking a number defines your worth. Avoiding these credit score mistakes will help you keep perspective and focus on the bigger picture.
How to Escape the Fear of Credit Score Myths
You don’t need to live in fear of your credit score. Here’s what really matters:
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Pay bills on time, every time.
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Keep balances low compared to your limits.
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Monitor your credit regularly.
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Use debt strategically, not emotionally.
By following these habits, you’ll be improving your credit score consistently and avoiding costly credit score mistakes that can drag it down.
The Bottom Line
Credit score myths might sound convincing, but they can haunt your financial decisions if you’re not careful. By knowing the truth, you can keep your score strong and focus on what really matters, building long-term financial clarity.
By learning the truth behind these credit score myths, you’ll gain the confidence to focus on long-term goals.
Take the First Step
Ready to stop letting credit score myths run your money? Learn how to take charge with Budgeting 101: Build a Budget That Works for You, your step-by-step plan to manage money, debt, and your credit wisely.
Want a quick win? Download the Mojo Money Guide for just $10 and discover your guilt-free spending number today.
And don’t miss out on joining our supportive community: From Chaos to Clarity: The Money Reset Group.
