When it comes to credit, misinformation is everywhere—and believing the wrong thing can cost you money, opportunities, and peace of mind.
Let’s break down the Top 7 Credit Myths that might be hurting your credit score—and what the truth actually is.
Myth #1: Checking your own credit hurts your score
Truth: This is one of the most common myths out there.
When you check your own credit (a “soft inquiry”), it has zero impact on your score.
It’s only when lenders pull your credit for a loan or credit card (a “hard inquiry”) that it could cause a slight dip.
Pro Tip: Check your credit regularly through trusted services like AnnualCreditReport.com. It’s your right—and it’s free!
Myth #2: Paying off a debt removes it from your credit report
Truth: Paying off a debt is great—but it doesn’t automatically erase it from your report.
Closed accounts, even if paid in full, can stay on your report for 7-10 years, depending on whether they were positive or negative.
Pro Tip: Focus on building new positive history and disputing any inaccurate or outdated negative items.
Myth #3: You should close old credit cards you’re not using
Truth: Closing old accounts can actually hurt your score by lowering your available credit and shortening your credit history.
Pro Tip: If there’s no annual fee, keep those old accounts open and active with small, occasional charges.
Myth #4: Carrying a small balance helps your credit score
Truth: This one’s tricky—and it’s totally false. You don’t need to carry a balance to improve your score. In fact, carrying a balance can cost you in interest.
Pro Tip: Aim to pay off your balances in full each month, and keep your credit utilization under 30% (under 10% is even better!).
Myth #5: Bankruptcy ruins your credit forever
Truth: Bankruptcy is a serious hit to your credit, but it’s not a life sentence.
You can begin rebuilding your credit right away, and many people see improvements within 12–24 months if they manage things wisely.
Pro Tip: After bankruptcy, focus on on-time payments, secured cards, and keeping balances low.
Myth #6: You can’t fix your credit yourself
Truth: You absolutely can fix your credit on your own. It takes time, patience, and the right strategy—but it’s totally doable.
Pro Tip: Learn your rights under the Fair Credit Reporting Act (FCRA) and dispute inaccurate or outdated items directly with the credit bureaus.
Myth #7: All credit repair companies are scams
Truth: While there are bad actors out there, not all credit repair companies are scams.
Reputable companies follow the law, educate clients, and never promise overnight results.
Pro Tip: If you seek professional help, look for companies that offer transparent pricing, no upfront fees, and a clear plan of action.
Final Thoughts
Your credit score is too important to leave to chance—or myths.
Whether you’re planning to buy a home, refinance, or simply get back on track, understanding the truth about credit is the first step to financial freedom.
Need help navigating credit repair?
Let’s talk strategy. I can help you understand where you stand, what steps to take, and how to move forward with confidence.