In today's data-driven financial world, your credit score acts as a silent judge, influencing everything from loan approvals to interest rates and even job opportunities.

Despite its importance, myths surrounding credit scores continue to circulate, often causing more harm than good.

Checking Your Own Credit Score Will Hurt It

One of the most pervasive myths is the belief that checking your own credit report or score causes damage. In reality, this type of inquiry is called a soft pull and has no impact on your credit score. On the other hand, hard inquiries—which occur when lenders review your credit for a loan or credit card application, it can slightly reduce your score temporarily. However, even hard inquiries usually have a minimal effect and drop off within two years.

Craig Tebbutt – Chief Strategy and Innovation Officer, Equifax: "The score is a helpful measure, but we'd always encourage people to look at the full detail in their credit report rather than solely relying on the score."

You Must Carry a Credit Card Balance to Improve Your Score

Carrying a balance from month to month doesn't help your score, it costs you. Many consumers wrongly assume that keeping a small revolving balance proves creditworthiness. In truth, what matters more is your credit utilization ratio, which reflects how much credit you're using compared to your total available limit.

Keeping this ratio below 30%, and ideally under 10%, can significantly boost your score. Paying your full balance each month not only saves you interest but also signals responsible credit use.

Closing Old Accounts Will Help Your Credit

Instinct might suggest that closing unused or old accounts is a smart move. But doing so can actually backfire. When you close an account, you reduce your total available credit, which increases your utilization ratio. Moreover, older accounts contribute positively to the length of your credit history, a key scoring factor.

You Only Have One Credit Score

Another misconception is that there's a single, universal credit score. In truth, there are many. Different credit bureaus calculate scores using their own models, and even the same bureau may generate different scores depending on the type of lender inquiry—auto loans, mortgages, and credit cards may each be assessed with slightly varied scoring models.

Paying Off a Debt Immediately Removes It from Your Report

Paying off a debt is certainly a responsible action, but it doesn't make the record of that debt vanish instantly. In most cases, paid accounts remain on your credit report for several years. A history of on-time payments will stay for up to 10 years, which is positive. However, if the account had late payments or went into collections, that negative data could still remain visible for 7 years from the date of delinquency.

Debit Cards Help Build Credit

While debit cards offer convenience, they don't impact your credit score at all. This is because debit transactions aren't reported to credit bureaus. Only accounts involving credit such as credit cards, loans, and lines of credit—contribute to your credit history. For those new to credit, opening a secured credit card or becoming an authorized user on a responsible person's account can help start a positive credit file. Credit building requires active, reported usage, not just regular bank activity.

Income Affects Your Credit Score

Many assume that higher income leads to a higher score. This isn't true. Your salary is not included in your credit report, and it doesn't factor into your FICO score. Instead, what matters is how responsibly you manage your credit obligations. A high-income individual who misses payments can still have a poor credit score, while someone with modest earnings but perfect payment history may rank very highly.

Financial literacy is essential in an economy where credit scores are gateways to opportunity. Misunderstanding how credit works can quietly sabotage everything from future housing to employment. Separating myth from fact empowers individuals to act with confidence, build credit intentionally, and protect themselves from preventable setbacks. As credit behavior increasingly influences financial access, knowledge isn't just power, it's a form of currency.