Debunking 3 Common Credit Score Myths

Have you ever believed something about money simply because “everyone says so”? Maybe you heard it from a friend who swore it was true. Or perhaps a family member or co-worker passed it along. Wherever these money myths or credit score myths originate, they tend to spread fast—and they often stick around much longer than they should.

This is especially true when it comes to personal finance. Topics like budgeting, debt, and credit can feel overwhelming, so many people rely on secondhand information. Unfortunately, not all of it is accurate. One area filled with misinformation? Credit scores.

Understanding how your credit score is calculated can be confusing, which is why so many credit score myths continue to circulate. But believing these myths could lead to poor financial decisions. Let’s break down and debunk three of the most common myths about credit scores.

Myth #1: Checking Your Own Credit Report Will Lower Your Score

One of the most widespread misconceptions is that checking your own credit will hurt your credit score. The truth? It won’t.

When you check your own credit report, it’s considered a soft inquiry, which does not affect your credit score. In contrast, a hard inquiry—such as when a lender pulls your credit because you’ve applied for a loan or credit card—can impact your score. Hard inquiries account for about 10% of your FICO score.

So don’t worry—reviewing your own credit report is safe and smart. In fact, it’s one of the best ways to stay on top of your finances and spot any signs of identity theft early.

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Myth #2: Closing Old or Inactive Accounts Will Improve Your Credit Score

This myth seems logical at first glance—why keep old accounts open if you’re not using them? But when it comes to your credit score, closing old accounts may actually hurt, not help.

That’s because length of credit history plays a key role in your score—about 15% of your FICO score. An older account with a solid payment history shows lenders that you’ve managed credit responsibly over time. When you close that account, you lose that positive history.

Unless an old account is costing you high fees or creating risk, it’s often best to leave it open and use it occasionally to help prevent the issuer from closing the account due to inactivity.

Myth #3: You Only Have One Credit Score

Many people assume there’s a single, universal credit score that every lender uses—but that’s not the case. In reality, you can have many different credit scores.

There are three major credit bureaus—Equifax, TransUnion, and Experian—and each one may have slightly different data about your credit history. On top of that, there are various scoring models (like FICO and VantageScore) that weigh factors differently. Because of these variations, the score you see from one source might differ from another.

That’s why it’s important to monitor your credit across multiple sources rather than relying on a single number.

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Why Monitoring Your Credit Is So Important

Staying informed about your credit score and report is crucial for financial health. You should check your credit at least once a year—more often if possible. Regular monitoring helps detect fraud, identity theft, and errors that could impact your ability to qualify for loans or get the best interest rates. Check all of your credit reports for free at www.annualcreditreport.com.

By understanding the truth behind these common credit myths, you can take control of your credit and make smarter financial decisions.

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Final Thoughts

Don’t let myths steer your financial future. Take the time to learn about your credit score, how it works, and what really affects it. Knowledge is power—especially when it comes to your money. Join us for a FREE weekly webinar– we discuss credit, investing, budgeting, and many other personal finance topics.