Debunking Common Credit Score Myths You Shouldn’t Believe

Tuesday, 23 April 2024, 09:30

Understanding the truth behind common credit score myths can help you make informed financial decisions. Learn why carrying a balance, the number of credit cards you have, closing accounts, and the idea of a single credit score are all misconceptions. Discover the real facts that can lead you to a higher credit score and better financial health.
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Debunking Common Credit Score Myths You Shouldn’t Believe

1. Carrying a balance is good for your credit score

This myth suggests that keeping a balance on your credit card is beneficial, but it actually leads to unnecessary interest charges.

2. It hurts your score when you have too many credit cards

Having multiple credit cards does not automatically lower your credit score, contrary to popular belief.

3. You shouldn't close any credit cards because it will lower your credit score

Closing credit cards may not have an immediate negative impact on your credit, and the benefits of keeping them open might be overstated.

4. You have a single credit score

There are multiple credit scoring systems and scores calculated by different bureaus, emphasizing the importance of understanding the scoring variations.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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