Credit Myths: Why Most People Get It Wrong

Ever heard someone say you need a 850 credit score to get a mortgage? Or that checking your own credit will tank it? Those are just a couple of the endless rumors floating around. Below we cut through the noise, point out what’s actually true, and give you straightforward tips you can use right now.

Myth #1 – Only a Perfect Score Gets You a Home Loan

Reality check: lenders look at the whole picture. Sure, a higher score helps you snag better rates, but a 720‑740 score is usually enough for most conventional mortgages. Your income, debt‑to‑income ratio, and employment history all play a role. If you have a solid job and low debt, a slightly lower score won’t shut the door.

Myth #2 – Checking Your Own Credit Hurts Your Score

That’s a classic scare‑tactic. When you pull your own report (a “soft inquiry”), it never shows up on your credit file. Hard inquiries, like when a lender runs a check, can dip your score a few points, but only temporarily. The real damage comes from missed payments, high balances, or old collections, not curious glances at your own score.

Want to keep tabs on your credit without risk? Use free tools from major bureaus or trusted fintech apps. They give you a snapshot and often alert you to big changes, so you can act fast.

Myth #3 – Closing Old Accounts Improves Your Score

Closing a decades‑old credit card might feel like cleaning house, but it can actually shrink your credit age and boost your utilization ratio. Both factors can pull your score down. If the card has no annual fee, leave it open and just stop using it. A tiny balance or none at all is fine.

Myth #4 – Carrying a Balance Improves Your Score

Some say you need to carry a balance to show activity. Nope. Paying off your balance in full each month shows lenders you can handle credit responsibly, and you avoid interest charges. A $0 balance on a card with a low utilization (under 30%) is actually the sweet spot.

Myth #5 – You Can’t Rebuild Credit After a Bad Mark

Bad marks aren’t forever. Most negative items drop off after seven years, and some (like collections) can be removed faster if you negotiate. In the meantime, focus on on‑time payments, keep balances low, and consider a secured credit card or a credit‑builder loan. Consistency over months will gradually lift your score.

Bottom line: Credit scores are a tool, not a mystery. Understanding what truly moves the needle helps you avoid costly mistakes and take control of your borrowing power. Keep an eye on the facts, ignore the hype, and watch your credit improve one smart decision at a time.