Some Of The Most Common Myths About Credit Score Debunked

Credit cards are a popular monetary instrument used by many people. Signing up for a credit card may seem easy, but your credit score plays a crucial part in acquiring one. These points help to ascertain your risk of repayment of a mortgage or a loan. Moreover, a good credit score is beneficial while renting an apartment, buying a new car, establishing a house, or applying for insurance. However, there are many misconceptions and myths regarding a good credit score. This article will dive into these myths and clarify them for you, so if you’re unsure about them, read on! 

Top 9 Common Myths About Credit Score 

Initially, credit scores are fiscal measures for a financial institution to provide loans, mortgages, and credit cards. Here are some of the most common myths surrounding credit scores and the factors that affect them. 

1. Tracking Points Shrink Your Credit Score

Naturally, the majority of credit card users like to keep track of their credit score. However, some people believe that regularly tracking the score can reduce it for some reason. This is a very wrong misconception. Frequently keeping an eye on the score helps to check on its progress, and you must track these points periodically to avoid missing data problems. 

Tracking is a natural activity and has nothing to do with decreasing your credit score. In fact, there are several free apps available that can help you do so. However, getting access to a new credit card can sometimes change your card points. Applying for a debt consolidation loan to clear past debts can also affect your score to some extent. 

2. Stuffed Amounts on a Credit Card Can Lift Credit Score

Another popular myth is that you can increase your credit score by keeping an amount on the card for a long time. It should be no surprise that doing so will, in fact, have the opposite effect on your credit score. You may even end up paying a high-interest rate. Why would you pay any interest on such an amount when you can easily square off the monthly bill?

Therefore, keeping a constant amount on your record can disturb the usage score of your credit card. The higher the amount, the higher your usage score. However, you can rebuild your score with credit builder cards for bad credit designed for those who can keep up the required score. 

3. Salary Affects the Credit Score

Many people are of the belief that their salary has a direct impact on their credit scores. This is a common myth that’s rather unhelpful when applying for a credit card. In fact, while having a credit card can positively impact your credit score, your income plays no role in this process. 

For the most part, income is a means to check the ability to pay off bills. It is not used as a tool to calculate the uncertainty of credits. Terms related to salary are not present in the credit data either. Hence, there is no way for it to affect your credit score. However, some factors that can impact your credit score include past payments, usage behaviour, and new loans, among others. 

4. Perfect Credit Score Projects Net Worth 

Having a high net worth does not affect your creditworthiness; it just means that you now have a better way to manage credit in different ways. It merely shows you that you can take the risk involved in paying off bills at a given time.

On the other hand, a perfect score shows that you have an extremely low chance of being a defaulter, and is a great way to get low-interest rates on getting a new card, loan, or mortgage. 

5. Perfect Credit Scores Are Pointless

An excellent credit score is something to be proud of, especially since the number of people with such scores is quite low. More importantly, however, a good score comes with several perks and benefits, and can also help you save a great deal when you avail them, such as with low interest rates, among others. Thus, a perfect or high credit score does matter, and must be your priority at all times. 

6. Old Age Matters for Scoring Good Credit

Some people believe that age plays an important role in determining your credit score. This myth came into being when people saw those old citizens had a higher credit score than youngsters.  

However, the only reason behind their high score is the fact that they had a longer payment history. Moreover, they have had a long time to manage credit dues and come up with better payment habits. 

Therefore, high credit scores aren’t solely reserved for older people; young people too can raise their credit score by being regular with their monthly bills, using credit cards, and managing finances efficiently. 

7. Liquidating Loans Multiplies the Credit Score

While liquidating a loan does multiply your credit score, it only applies to credit card loans. This does not happen with other loans like car loans, education loans, and premium loans, among others. 

In some cases, paying other loans can also boost credit points as it will decrease debt bills. You should periodically pay off your debts if you do not want to pay a higher interest rate, as this will also help increase your credit score.

8. Marriage Will Divide Credit Scores Between Spouses

Whether or not you’re married, you will always be the sole holder of your credit card and its liabilities. The liability of paying off the debt will not transfer over to your spouse. However, the idea of a joint credit card does exist. 

In such cases, the credit scores of both the partners are factored in during the application. The spending behaviour of either of the spouses will affect their credit scores jointly. Hence, it is always better to apply for individual credit cards as opposed to a joint one. 

9. Debit Cards Boost Credit Score 

Finally, most people have a misconception that using debit cards can help to bring a positive impact on your credit score. However, this is not true. Both debit and credit cards are poles apart. Debit cards are directly linked to your savings and do not constitute a liability. 

On the other hand, credit cards facilitate payments from the money you promise to pay in the future. Not having a liability may sound good, but that isn’t the full picture. Using a credit card has a direct effect on your credit score. By making timely payments, you will have a positive credit score. This will later help you get loans, mortgages, and lower interest rates, among other benefits. 


To summarize, the above list should clarify various myths about credit scores that you may have come across in your life. Using a credit card can help you build up your credit score over time, provided you ensure to pay off your bills on time and manage your credit well. Good luck! 

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