Common Myths About Personal Credit—Debunked

There’s a lot of misinformation about personal credit. Here are a few common myths and the truth behind them:

6/2/20251 min read

Myth: Checking your own credit score will hurt it.
- Fact: Checking your own score is considered a “soft inquiry” and does not affect your credit.
Myth: You need to carry a balance to build credit.
- Fact: Paying off your balance in full each month is better for your score and your wallet.
Myth: Closing unused credit cards will improve your score.
- Fact: Closing cards can reduce your available credit and shorten your credit history, potentially lowering your score.
Myth: All debts are equally bad for your credit.
- Fact: Responsible management of different types of debt (credit cards, loans, etc.) can actually help your score