10 Credit Score Myths That Are Costing You Points

Credit score myths are everywhere — and following bad advice can cost you real points. Here are the 10 most common misconceptions, debunked.

Myth 1: Checking Your Own Credit Hurts Your Score

False. Checking your own credit is a soft inquiry with zero impact. Only hard inquiries (when a lender pulls your credit) can temporarily affect your score.

Myth 2: Closing Old Cards Improves Your Score

Usually false. Closing a card reduces available credit (raising utilization) and lowers your average account age. Both hurt your score.

Myth 3: Paying Off a Collection Removes It

False. It updates to "paid collection" but stays for 7 years. To remove it, negotiate a pay-for-delete agreement before paying, or dispute it successfully.

Myth 4: You Only Have One Credit Score

False. There are dozens of FICO score versions. Mortgage lenders use FICO 2, 4, and 5 — often very different from monitoring app scores.

Myth 5: Income Affects Your Credit Score

False. Income is not in your credit report or score calculation. Scores are based on payment history, amounts owed, length of history, credit mix, and new credit.

Myth 6: You Need to Carry a Balance to Build Credit

False. Pay your balance in full each month. This demonstrates responsible use and builds your history without paying interest.

Myth 7: Rate Shopping Hurts Your Score for Credit Cards

True for cards, not mortgages/auto/student loans. Multiple credit card applications each result in a separate hard inquiry. Rate shopping protection only applies to installment loans.

Myth 8: Bad Credit Is Permanent

False. With a strategic approach, significant improvement is possible in 3–12 months. Most negatives age off within 7 years, and active optimization can rebuild a strong profile much faster.