Credit misinformation spreads faster than ever. These myths aren't harmless-each one costs people real money in higher interest rates, denied applications, and missed opportunities. Let's set the record straight.
Myth 1: Checking Your Own Score Hurts It
Checking your own credit (a 'soft inquiry') has zero impact on your score. Only 'hard inquiries'-initiated by lenders when you apply for credit-affect your score. Check your score as often as you want.
Myth 2: Closing Old Cards Improves Your Score
Closing a credit card can actually hurt your score in two ways: it reduces your available credit (increasing utilization) and may lower your average account age. Keep old cards open, even if rarely used-just make a small purchase annually to keep them active.
Myth 3: You Only Have One Credit Score
You have dozens of credit scores across different bureaus and scoring models. FICO alone has over 60 industry-specific versions. The score your mortgage lender pulls is almost certainly different from the one on your credit monitoring app.
Key Takeaways
- Soft inquiries (checking your own score) have no impact
- Closing old cards can hurt utilization and average account age
- You have many different credit scores across different models and bureaus
- A high salary has no direct effect on your credit score