October 16th, 2025 6:08 PM by Austin Howland
Busting Common Credit Myths: What You Need to Know
When it comes to credit, misinformation is everywhere—and believing the wrong things can hurt your financial health. As a mortgage broker, we know how important your credit is when it comes to securing a home loan. That’s why we’re here to clear up some of the most common credit myths and help you make informed decisions.
Myth #1: Checking Your Own Credit Hurts Your Score
Truth: Checking your own credit report is considered a soft inquiry and does not affect your credit score. In fact, regularly reviewing your credit is a smart habit. It helps you stay on top of your financial health, detect potential fraud early, and understand changes in your score. Staying informed is key to maintaining strong credit.
Myth #2: Closing Old Accounts Improves Your Credit
Truth: While closing an old account might help curb unnecessary spending, it doesn’t necessarily help your credit score. Credit history length is a factor in your score, and closing older accounts can shorten that history. Lenders like to see a long track record of responsible credit use—so think twice before closing that longstanding account.
Myth #3: Paying Off a Negative Record Removes It from Your Report
Truth: Paying off debts is always a good idea, but it doesn’t erase the past. Negative marks like late payments or collections typically stay on your credit report for up to seven years from the date of the first delinquency. Paying them off shows responsibility, but the record will still be visible for a while.
Myth #4: Credit Scores Change Randomly
Truth: Your credit score is based on the data in your credit report. If your score changes, something in your report has changed too. It could be a new account, a missed payment, a hard inquiry, or even a higher balance on a credit card. Reviewing your report can help you pinpoint the cause and take action if needed.
Myth #5: Quick Fixes Can Instantly Boost Your Score
Truth: There’s no magic trick to instantly improve your credit score. While actions like paying down high balances or correcting errors on your report can help, building strong credit takes time. Consistent, responsible financial behavior—like making payments on time and keeping balances low—is the most effective way to improve your score over the long term.
Final Thoughts:
Understanding how credit works is essential, especially when you're preparing to buy a home. Don’t let myths steer you off course. If you have questions about your credit or how it affects your mortgage options, we’re here to help.
Contact us today: 407-834-3377