Common Credit Score Myths That Keep People From Improving Theirs
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In this article
From checking your own score to closing old cards — separating credit score fact from widespread fiction.
Key Takeaways
- Checking your own credit score does not lower it — only hard inquiries from lenders can do that.
- Closing old credit cards can actually hurt your score by reducing available credit and shortening credit history.
- Carrying a balance each month does not improve your score; paying in full avoids interest without penalty.
- A low income does not directly lower your credit score — income is not a scoring factor.
- Negative items like late payments don't stay on your report forever; most fall off after seven years.
Why Credit Score Myths Persist
Credit scores affect borrowing rates, rental applications, and sometimes even job offers — yet widespread misconceptions about how they work are remarkably common. Myths spread because credit scoring models aren't fully transparent to consumers, leaving gaps that misinformation fills. The result: people avoid actions that would actually help their score, or take actions that quietly harm it.
This article works through the most persistent myths, replaces them with accurate information, and points you toward practical next steps. For a solid foundation, see our overview of what a credit score actually measures.
This article is for general informational and educational purposes only and is not personalised financial or legal advice. Consult a qualified financial professional for guidance specific to your situation.
Myth
Checking my own credit score will lower it.
Fact
Checking your own score is a "soft" inquiry and has no effect on your credit score whatsoever.
Credit inquiries come in two types. A hard inquiry occurs when a lender pulls your report to make a credit decision — this can temporarily lower your score by a few points. A soft inquiry — which includes checking your own score through a bureau, a bank portal, or a free monitoring service — does not affect your score at all. Regularly reviewing your own credit report is actually encouraged, because it helps you catch errors and potential fraud early.
Myth
Closing old credit cards you no longer use is good financial hygiene.
Fact
Closing old accounts can hurt your score by reducing your total available credit and potentially shortening your average account age.
Two important scoring factors are at play here. First, closing a card reduces your total credit limit, which can push your credit utilisation ratio (the share of available credit you're using) higher — and higher utilisation generally lowers your score. Second, older accounts contribute positively to the length of your credit history, which makes up a meaningful portion of most scoring models. Unless a card carries a fee you can't justify, keeping it open and occasionally using it for a small purchase is often the better approach.
Myth
You need to carry a monthly balance to build credit.
Fact
Paying your balance in full each month builds credit just as effectively — and saves you from paying interest.
This myth likely originates from a misunderstanding of how card activity is reported to bureaus. What matters is that you use the card and that the activity is reported — not that you carry a balance. Paying in full before the due date demonstrates responsible use, keeps your utilisation low, and avoids interest charges entirely. There is no scoring benefit to carrying a balance; doing so only benefits the card issuer through interest revenue.
Myth
A low income means a low credit score.
Fact
Income is not a factor in any major credit scoring model. Your score reflects how you manage credit, not how much you earn.
Major scoring models — including the widely used FICO and VantageScore models — do not incorporate income, employment status, or net worth. What they measure is your credit behavior: whether you pay on time, how much of your available credit you use, how long you've had accounts, and similar factors. A high earner with a history of missed payments can have a poor score, while someone with a modest income who manages credit carefully can have an excellent one.
Myth
Negative marks on your credit report stay there forever.
Fact
Most negative items — including late payments, collections, and charge-offs — are removed from your report after seven years.
Under the federal Fair Credit Reporting Act (FCRA), the reporting period for most negative items is seven years from the date of the original delinquency. Bankruptcies can remain longer — Chapter 7 bankruptcies for up to ten years, for example — but even those eventually drop off. Importantly, the impact of a negative item on your score typically diminishes over time as it ages and as positive information accumulates. That means consistent good habits now will improve your score well before the item disappears entirely. If you believe a negative entry is inaccurate, you have the right to dispute it.
Myth
You only have one credit score.
Fact
You have multiple credit scores, which vary by bureau, scoring model, and version — lenders may see a different number than you do.
The three major U.S. credit bureaus — Equifax, Experian, and TransUnion — each maintain their own files on you, and not all creditors report to all three. Scoring companies like FICO and VantageScore also release multiple model versions, and different lenders use different versions depending on the type of credit being applied for. This means the score you see through a free monitoring app may differ from the one a mortgage lender or auto lender pulls. The practical implication: focus on the underlying factors that drive all scores rather than fixating on any single number.
Putting the Facts to Work
Separating myth from fact is only the first step. The scoring factors that actually matter — payment history, credit utilisation, length of credit history, credit mix, and new credit inquiries — are well-documented and largely within your control. Our article on the five factors that shape your score explains how much weight each carries.
35%
Weight of payment history in FICO scoring
According to FICO's publicly disclosed scoring framework, payment history is the single largest factor in a standard FICO score.
30%
Weight of credit utilisation in FICO scoring
Amounts owed — primarily your utilisation ratio — is the second-largest component, making balance management critical to score health.
7 years
Standard reporting period for most negative items
The Fair Credit Reporting Act limits how long most negative entries, such as late payments and collections, may legally remain on a credit report.
One of the highest-leverage moves is managing your utilisation ratio carefully. The credit utilisation guide breaks down exactly how the ratio is calculated and how to keep it at a level that supports a healthy score. Equally important: if you spot an error pulling your score down, you have the right to dispute it — see our step-by-step guide to disputing credit report errors.
Don't Ignore Unexpected Score Drops
On-time payments alone don't guarantee a stable score. Factors like a sudden spike in utilisation, a new hard inquiry, or a closed account can cause an unexpected dip. If your score falls without an obvious reason, review your full credit report from each bureau for changes. Our article on why your score can drop even when you pay on time covers the lesser-known culprits in detail.
Ready to take action? Our guide on building credit responsibly over time outlines proven habits for establishing or rebuilding a credit profile without taking on unmanageable risk. And if budget habits are also a work in progress, you may recognise some familiar thinking in our companion piece on common budgeting myths that hold people back.
Author
Money & Finance Editorial Team
Money & Finance Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.
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