When you apply for a credit card, loan or even an apartment, one number plays a huge role in the decision: your credit score. This three-digit number helps lenders understand you level of risk and predicts how likely you are to pay your bills on time.
The most widely used scoring model is the FICO Score, which ranges from 300 to 850. In face, about 90% of top lenders rely on FICO when making lending decisions. The average score in the U.S. sits around 717, which is considered good.
But with how important credit scores are, there’s also a lot of misinformation floating around. People make decisions based on things they’ve “heard” and those myths can actually hurt their credit instead of helping it.
Let’s break down four of the most common credit score myths and what’s actually true.
Myth #1: You Age Impacts Your Credit Score
A lot of people assume older adults automatically have higher credit scores. While it’s true that someone who has managed credit responsibly over many years can have a higher score, your age itself does not affect your credit at all.
What does matter is the age of your credit accounts, not how many birthdays you’ve had.
A 20-year-old with a three-year credit history can outperform a 50-year-old who just opened their first card. Credit scoring models only look at data related to your accounts, not your date of birth.
Myth #2: Carrying a Balance Helps Your Credit Score
This one is extremely common and extremely wrong.
Many people believe that carrying a balance month to month gives your credit score a boost. In reality, carrying a balance does nothing positive for your credit and can actually hurt you:
Here’s the truth:
- Credit scores reward low balances, not carried balances
- High balances increase your credit utilization which lowers your score
- Paying your bill in full saves you interest and keeps your score healthier
The best strategy? Use your card, pay on time and keep your balance low. That’s what credit scoring models want to see.
Myth #3: Closing Credit Cards Will Improve Your Score
It sounds logical. The few cards you have, the fewer the problems…right? Not when it comes to credit. Closing a credit card can actually hurt your score, especially if it’s an older card or a card with a high limit. Here’s why:
1. You may increase your credit utilization
If you close a card with a $0 balance, your total available credit drops, which can instantly increase your utilization and decrease you score.
2. You shorten the average age of your accounts
Even though closed cards stay on your report for up to 10 years, closing them early still removes future credit history potential.
3. You lose a potentially helpful account
Sometimes simply downgrading the card or asking for a retention offer is better than closing it.
So, when is the only time closing a card smart? When the annual fee isn’t worth it or personal circumstances (like divorce) require it.
Myth #4: Checking Your Credit Score Will Hurt Your Score
This one used to be true for decades, not not anymore. Checking your own credit score or viewing your credit report has zero impact on your score. These are called soft inquiries and they don’t affect your credit in any way.
Today, you can check your credit score and reports for free:
- AnnualCreditReport.com – weekly free reports from all three bureaus
- Many credit card issuers offer free FICO scores
- Apps and banks such as Credit Karma or WalletHub provide alerts for major changes
- Services such as IDShield which provide monitoring and alerts
Knowing your score is important because it affects so many areas of your life:
- credit cards
- loans and mortgages
- rental applications
- insurance premiums
- utility deposits
- even some jobs and security clearances
Your credit health matters and staying informed costs you nothing.
The Bottom Line
There’s a lot of credit advice out there, but not all of it is accurate. Believing credit score myths can cost you money, opportunities and better financial options. Always base your decision on facts, not assumptions. The more you understand how credit really works, the easier it becomes to build and maintain a strong credit profile.
