Key Takeaways
- Checking your own credit score does not lower it — that's a soft inquiry.
- Closing old credit cards can hurt your score by reducing available credit and history length.
- Carrying a small balance on your card does not help build credit and costs you money in interest.
- Income is not a factor in any major credit scoring model.
- Negative items like late payments don't stay on your report forever — most fall off after seven years.
Why Credit Score Myths Stick Around
Credit scores influence whether you're approved for an apartment, what interest rate you pay on a car loan, and sometimes even whether you get a job offer. Despite how much weight they carry, the way scores actually work remains murky for many people. That knowledge gap is fertile ground for myths — some harmless, some that can genuinely set back your financial progress.
The misconceptions below aren't obscure edge cases. They're beliefs that come up regularly, passed along by well-meaning friends and family or repeated so often they've taken on the feel of fact. Getting them straight doesn't require a finance degree — just a clear look at how the numbers actually work. If you've ever wondered whether saving misconceptions are similarly holding you back, our guide to saving myths is worth a read too.
Myth
Checking my own credit score will lower it.
Fact
Checking your own score is a "soft inquiry" and has zero effect on your credit score.
Credit inquiries come in two types: soft and hard. A soft inquiry happens when you check your own score, when a lender pre-screens you for an offer, or when an employer runs a background check. Soft inquiries are invisible to lenders and do not affect your score at all.
A hard inquiry — which can cause a small, temporary dip — only occurs when you apply for new credit, such as a loan or a credit card. Regularly monitoring your own credit is actually a healthy habit. You can check your full credit reports for free at AnnualCreditReport.com. See our guide to reading your credit report for a walkthrough of what to look for.
Myth
Closing old or unused credit cards is good for your score.
Fact
Closing old accounts often hurts your score by shrinking your available credit and potentially shortening your credit history.
Two important factors in credit scoring are credit utilization (the percentage of your available credit you're using) and the length of your credit history. When you close a card, you lose that card's credit limit. If you still carry balances on other cards, your utilization ratio rises — and a higher ratio can lower your score.
Closing your oldest card can also reduce the average age of your accounts, which scoring models view less favorably. Unless a card carries an annual fee that outweighs its value to you, keeping older accounts open and occasionally using them for a small purchase is generally the better move.
Myth
You need to carry a balance to build credit.
Fact
Paying your balance in full each month builds credit just as effectively — and saves you money on interest.
This is one of the most persistent and costly myths around. Lenders report your account activity to credit bureaus whether you carry a balance or not. What matters is that you're using credit and paying on time. Payment history is the single largest factor in most scoring models, accounting for roughly 35% of a FICO score.
Carrying a balance doesn't signal responsibility to a scoring model — it signals you owe more money. It also means you'll pay interest, sometimes at rates well above 20% APR. Pay what you charge each month and your score benefits without the added cost.
Myth
Your income directly affects your credit score.
Fact
Income is not a component of any major credit scoring model, including FICO and VantageScore.
Credit scores are calculated using information found in your credit report — things like payment history, amounts owed, length of credit history, credit mix, and new credit inquiries. Your salary, hourly wages, or employment status simply aren't included in that data.
That said, lenders often do consider income separately when you apply for credit — it's part of their broader underwriting process. But that's a lender decision, not a scoring factor. Someone earning a modest income can have an excellent score, and a high earner with poor payment habits can have a poor one. Learn more in our explainer on what credit scores actually measure.
Myth
A bad mark on your credit report stays there forever.
Fact
Most negative items, including late payments and collections, fall off your credit report after seven years.
Under the Fair Credit Reporting Act (FCRA), most negative information has a defined shelf life. Late payments, collections, and charge-offs typically drop off after seven years from the date of the original delinquency. Chapter 7 bankruptcy can remain for up to ten years, but it too eventually ages off.
Importantly, the impact of negative items also diminishes over time — a late payment from five years ago weighs far less on your score than one from six months ago. Taking positive steps now, such as paying on time and keeping balances low, can meaningfully improve your score even before old negatives disappear. For a plain-language breakdown of report terminology, see our credit report glossary.
What Actually Moves the Needle on Your Score
Once the myths are cleared away, the picture becomes simpler. The factors that genuinely affect your score — and that you can actually influence — come down to a short list:
35%
Weight of payment history in a FICO score
According to FICO's published scoring criteria, payment history is the single largest factor in your base FICO score.
7 years
How long most negative items stay on your report
Under the Fair Credit Reporting Act, most negative credit information must be removed after seven years from the date of the original delinquency.
30%
Commonly cited credit utilization threshold
Consumer finance guidance widely recommends keeping revolving credit utilization below 30%, though lower ratios are generally better for your score.
- Pay on time, every time. Payment history carries the most weight in standard scoring models. Even one missed payment can leave a mark that takes months to recover from.
- Keep your credit utilization low. As a general rule, using less than 30% of your available revolving credit is considered favorable, and lower is better.
- Don't open new accounts unnecessarily. Each application for new credit results in a hard inquiry, which can cause a small, short-lived dip.
- Let accounts age. The longer your accounts have been open and in good standing, the better — which is why closing old cards rarely makes sense.
Don't Let Myths Drive Your Credit Decisions
Acting on bad information — like closing old accounts or intentionally carrying a balance — can set your score back by months or more. Before making a change to your credit accounts, take a moment to verify how it actually affects the scoring factors that matter. Small, evidence-based habits over time do more than any quick fix.
This article is for general informational purposes only and is not personalized financial advice. For guidance specific to your situation, consider speaking with a nonprofit credit counselor or a licensed financial professional.