Achieving the highest possible credit score can open the door to better loan terms, lower interest rates, and increased financial freedom. But when it comes to improving your credit, misinformation is everywhere. Many people fall victim to popular credit myths that can actually harm their financial progress instead of helping it. If you're aiming for an excellent or even perfect credit score, it's essential to separate fact from fiction.
In this blog, we'll break down five of the most common credit score myths and explain why you should ignore them if you're serious about boosting your score.
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Myth #1: You Need a Perfect 850 Credit Score to Get the Best Rates
A perfect 850 credit score is impressive, but it's not necessary to get the best financial products or lowest interest rates. In reality, lenders typically offer their best terms to borrowers with scores in the 760–800+ range. Once you're in this "excellent" credit category, having a slightly higher score won’t usually make a noticeable difference.
That means chasing a perfect 850 is not essential. Instead, focus on maintaining strong credit habits that consistently keep you above 760, and you'll still be eligible for the best offers on credit cards, mortgages, and auto loans.
Myth #2: Checking Your Own Credit Lowers Your Score
This myth prevents many people from regularly checking their credit reports. The truth is, checking your own credit is considered a soft inquiry and does not affect your credit score in any way. Soft inquiries occur when you access your own report or when a lender pre-approves you for an offer without a formal application.
However, hard inquiries, like applying for a new credit card or loan, can momentarily reduce your score. But checking your own credit? Completely safe—and highly recommended. You can keep an eye out for any mistakes or questionable activities by keeping an eye on your reports.
Myth #3: Closing Old Credit Cards Improves Your Score
This myth seems logical at first—fewer accounts might mean less risk, right? Not necessarily. Closing an old credit card can actually harm your credit score in two major ways: it reduces your average account age and increases your credit utilization ratio.
Keeping older accounts open can benefit because your credit history length accounts for 15% of your score. And since closing a card reduces your available credit, your utilization ratio might go up, which negatively impacts your score. Unless an old card has a high annual fee or you're unable to manage it responsibly, it’s usually best to leave it open.
Myth #4: Carrying a Balance on Credit Cards Helps Your Score
A minimal balance from month to month, according to some, indicates responsible credit use. In fact, this is not only false, but also costly. Having a balance results in paying needless interest rather than improving your credit score.
Credit bureaus do like to see that you’re using credit, but what matters is that you use it wisely, not that you carry debt. Using your credit card frequently and paying off the entire amount each month is the best method to demonstrate responsible usage. That way, you avoid interest while still demonstrating good credit behavior.
Myth #5: You Can Fix a Bad Credit Score Quickly
Improving a credit score is a gradual process. There's no shortcut or magic trick that can instantly turn a poor score into an excellent one. The majority of changes take steady work over time, while there are certain acceptable ways to increase your score in a few months, such as disputing errors or paying off large debt.
Companies who guarantee to improve your credit overnight should be avoided. Many of these services are scams that charge high fees and offer little real help. Building a strong credit score comes down to developing and maintaining good financial habits: paying on time, keeping debt low, and avoiding unnecessary credit inquiries.
Conclusion
Understanding how credit scores work is essential for reaching the highest possible credit score. Myths like needing a perfect 850, thinking that checking your own score is harmful, or believing that carrying debt helps can all stand in your way. Focus instead on verified strategies that truly support your credit health.
