There's more misinformation about credit scores than internet cat videos! Bad advice can lead to poor decisions, so let's separate the myths from what truly helps (or hurts) your score.
Myth #1: "Closing Unused Credit Cards Improves Your Score"
Fact: Often the opposite! Closing old accounts lowers your available credit, increasing your utilization (bad!), and shortens your credit history (also bad!).
Exception: If the card has a high annual fee, it might be worth closing.
Myth #2: "Carrying a Small Balance Helps Your Score"
Fact: Nope! Any balance increases your utilization, potentially lowering your score. Paying off cards IN FULL every month is the power move.
Where This Myth Comes From: Probably a misinterpretation of how utilization is calculated.
Myth #3: "Checking Your Credit Score Hurts It"
Fact: Big relief here! Checking your own score is a "soft inquiry", it has NO impact. Stay on top of your credit, it's smart!
Hard Inquiries: These happen when you apply for credit, they can ding your score a tiny bit, but fade in importance over time.
Myth #4: "You Need to Use Credit to Have a Credit Score"
Fact: Not always true! Rent, utility payments, even some streaming subscriptions might be reported if you opt-in. Helps those with no traditional credit.
However: These alternatives may not have the same impact as credit card/loan payment history.
Myth #5: "There's Only One 'Universal' Credit Score"
Fact: Nope! You have lots of scores, depending on the scoring model (FICO, VantageScore) and which bureau's data is used. There are variations!
Good News: They usually trend in the same general direction.
Surprising Facts (That People THINK Hurt Your Score)
Income: Not included in score calculations.
Checking Rates: Shopping around for loans within a focused period counts as one hard inquiry.
Errors on Report: Mistakes happen! Disputing them does NOT hurt your score
Action Step: Find Reputable Credit Help
Beware of "credit repair" schemes promising quick fixes. Focus on resources like:
Federal Trade Commission (FTC): [consumer.ftc.gov]
Consumer Financial Protection Bureau (CFPB): [consumerfinance.gov]
Glossary
Soft Inquiry: Doesn't impact scores (checking your own, prequalification offers).
Hard Inquiry: Slight temporary scoring ding when applying for new credit.
Next Up... Now you know the basics, let's get into concrete actions for boosting that score!