Your credit score is one of your most important financial “grades,” yet it is shrouded in mystery and misinformation. One of the most persistent myths is that checking your own score lowers it. In reality, checking your own report is a “soft inquiry” and has zero impact on your score. Only “hard inquiries,” such as when a lender pulls your credit for a new loan or credit card, can cause a temporary dip.
Another common misconception is that carrying a balance on your credit card improves your score. This is false and expensive. You do not need to pay interest to have a high score; paying your bill in full every month shows lenders you are responsible, and it keeps your “credit utilization” low—a key factor in a high score. Additionally, many believe that closing an old, unused account is a good way to “clean up” their credit. However, this can actually hurt your score by shortening your average credit history and reducing your total available credit. Understanding these nuances is the first step toward a top-tier rating.
