7 Common Myths About Credit Scores and Why They’re Wrong

Your credit score is more than a number—it’s important for accessing financial opportunities. But incorrect advice can lead to bad decisions and unnecessary stress. The truth is often simpler than the myths suggest. Here are seven common credit score myths and the facts you need to know.

Checking Your Credit Hurts Your Score

Ever hesitated to check your credit because you thought it might hurt your score? Many people do. But here’s the deal: when you check your own credit, it’s considered a “soft inquiry,” which is harmless. On the other hand, applying for credit results in a “hard inquiry” that may cause a small, temporary dip in your score. Monitoring your credit regularly helps you catch errors or signs of ID theft—and won’t cost you any points.

Carrying Credit Card Balances Improves Your Score

Some people think keeping a balance on your credit card helps your credit score. It doesn’t. Carrying a balance only adds unnecessary interest charges. What really matters is your credit utilization—how much of your credit limit

Your Income Impacts Your Credit Score

A higher income might make debt easier to manage, sure, but your salary has no bearing on your credit score. Credit bureaus focus on how well you handle credit: things like paying on time, keeping credit usage low, and maintaining a mix of account types.

Closing Old Credit Cards Improves Your Score

Closing those extra credit cards seems like a good move, right? Not necessarily. Shutting down old accounts can actually hurt your score. It reduces your available credit, which can push up your credit utilization ratio. Plus, it may shorten your average credit history—another factor in your score. Unless the card has steep fees, keeping it open could be a smarter option.

Your Credit Score Merges When You Get Married

Many newlyweds get confused about this: your credit score doesn’t combine with your partner’s after marriage. You each keep your own credit history and score. However, opening a joint account or co-signing a loan can impact both of you. If one of you has bad credit, shared finances could lead to problems down the road.

Employers See Your Credit Score

Worried about that job application? Relax—employers don’t see your credit score. They may review a version of your credit report, but this report leaves out the score itself. It’s more about checking for red flags related to debt or financial reliability. Some states even limit this practice, and employers need your permission beforehand. Rest assured, it doesn’t impact your score.

Debit Card Usage Helps Build Credit

Spending on your debit card won’t build your credit, no matter how you swipe it. It’s just pulling money directly from your bank account—no borrowing involved. For building credit, you’ll need to use tools like a credit card or small personal loan and show you can handle them responsibly.

Mythbusting Matters

Buying into these credit myths can keep you from reaching your financial goals. The truth is simple: pay on time, keep accounts open, and monitor your credit. Focus on these habits, forget the myths, and take charge of your credit.

How Cutting Up Your Credit Cards Will Help You Get Out of Debt

Credit card debt can feel overwhelming, but better spending habits can change everything. Cutting up your cards is an easy way to break free from debt and build healthier financial routines. Use these proven tips to take charge of your money and improve your finances.

Read it Here: How Cutting Up Your Credit Cards Will Help You Get Out of Debt

10 Sneaky Expenses Keeping You from Reaching Your Financial Goals

Managing money isn’t easy, and hidden costs can easily derail progress. It’s not just big-ticket purchases that hurt your savings; small, sneaky expenses often fly under the radar. Identifying and addressing these expenditures can dramatically improve your financial health. Here are ten common culprits that could be blocking your financial goals.

Read it Here: 10 Sneaky Expenses Keeping You from Reaching Your Financial Goals