5 Credit Score Myths That Are Hurting Your Financial Growth
Your credit score isn’t just a number—it’s the key to unlocking low-interest loans, credit cards, housing opportunities, and even job offers. Yet, many people unknowingly hold on to outdated or false beliefs that are silently sabotaging their financial future.
In this post, we’re busting 5 common credit score myths that might be holding you back—and showing you what to do instead.
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Myth #1: Checking Your Own Credit Hurts Your Score
The truth: Soft inquiries (like checking your own credit) do not impact your credit score.
Only hard inquiries—those from lenders when you apply for a loan or credit—can temporarily reduce your score by a few points. Monitoring your score regularly through apps like Credit Karma or Experian is actually a smart move.
Pro tip: Check your credit at least once a month to catch errors early and track your progress.
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Myth #2: Carrying a Balance Helps Your Credit
The truth: This one is expensive and wrong.
Many people think leaving a balance on their credit cards helps their score. In reality, carrying debt just costs you interest. What actually matters is your credit utilization ratio—the percentage of credit you're using compared to your total limit.
Aim to use less than 30% of your available credit and pay it off in full every month to build strong credit without paying extra.
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Myth #3: You Need a High Income to Build Credit
The truth: Your income is not factored into your credit score.
It doesn’t matter whether you earn $1,000 or $10,000 a month—your score is based on your credit behavior, such as:
Paying bills on time
Using credit responsibly
Maintaining long account history
Even with a low income, you can build excellent credit by keeping your spending in check and being consistent.
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Myth #4: Closing Old Accounts Helps Your Score
The truth: Closing credit card accounts—especially old ones—can hurt your score.
Why? Because two key factors in your credit score are:
Length of credit history
Credit utilization ratio
Closing an old card reduces your average account age and lowers your total credit limit, which could spike your utilization. Unless a card has high fees or a legit reason to close it, it’s better to keep it open (even if unused).
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Myth #5: One Late Payment Won’t Matter Much
The truth: Even a single late payment can seriously damage your credit score.
Payment history makes up 35% of your credit score, and missing even one due date can drop your score by 50–100 points. Worse, the late payment can stay on your report for up to 7 years.
Set up auto-pay or calendar reminders to avoid accidental slips.
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Final Thoughts
Credit is one of the most misunderstood parts of personal finance—but also one of the most powerful. By avoiding these common myths, you can take control of your financial future, qualify for better offers, and save thousands in interest.
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