Myth 1:
Checking my credit score hurts my score

• Reality: 
  Checking your credit score through a “soft inquiry” does not impact your score.
• Hard Inquiries: 
  Only lender or bank checks for new applications (“hard inquiries”) can slightly lower your score.
• Tip: 
  Regularly monitor your credit to stay informed and catch errors without harming your score.

Myth 2:
I need to carry a balance to build credit

• Reality: 
  Paying off your credit card balance in full each month is better for your score and financial health.
• Misconception: 
  Carrying a balance leads to interest charges without improving your credit score.
• Key Point: 
  Consistent, responsible use builds credit, not debt accumulation.

Myth 3:
Closing old credit cards will help my score

• Reality: 
  Closing old credit cards can reduce your overall credit limit and increase your credit utilization ratio.
• Impact: 
  Shortens your credit history and may negatively affect your score.
• Advice: 
  If the card has no fees and you’re not tempted to overspend, it’s generally better to keep it open.

Myth 4:
My income directly affects my credit score

• Reality: 
  Credit scores are determined by factors like payment history, credit utilization, and types of credit used, not directly by your income.
• Importance of Income: 
  While income helps lenders assess your ability to repay, it doesn’t influence your credit score.
• Note: 
  High income with poor credit behavior can still result in a low credit score.

Myth 5:
I can only have one credit card

• Reality: 
  Having multiple credit cards is not inherently harmful.
• Management Matters: 
  It’s the responsible management of multiple cards that matters.
• Benefit: 
  Multiple cards can improve your credit utilization ratio if managed well.

Myth 6:
Bankruptcy erases my credit score forever

• Reality: 
  Bankruptcy remains on your credit report for several years but does not make it impossible to rebuild your credit.
• Rebuilding Steps: 
  Consistently paying bills on time and using credit wisely can gradually improve your credit profile.
• Hope: 
  Bankruptcy is a setback, not a permanent barrier to good credit.

Myth 7:
Using my debit card builds credit

• Reality: 
  Debit card transactions are not reported to credit bureaus and do not affect your credit score.
• Building Credit: 
  Use credit products like credit cards, loans, or other forms of credit to build your credit history.
• Usage Tip: 
  Manage credit responsibly to contribute positively to your credit score.

Myth 8:
A Low credit score is permanent

• Reality: 
  Credit scores are dynamic and can improve over time with responsible financial behavior.
• Improvement Strategies: 
  Pay bills on time, reduce outstanding debts, and make wise credit choices.
• Patience and Persistence: 
  Rebuilding credit takes time but is entirely achievable.

Myth 9:
Only big purchases affect my credit score

• Reality: 
  All financial behaviors related to credit usage, including small, everyday transactions, impact your credit score.
• Daily Management: 
  Timely credit card payments and maintaining low credit utilization contribute to your credit health.
• Comprehensive Impact: 
  Both large and small financial actions play a role in building or damaging your credit.

Myth 10:
A higher salary automatically means a better credit score

• Reality: 
  Your credit score is influenced by your credit behavior, not your income level.
• Behavior Over Income: 
  Making on-time payments and maintaining a healthy credit utilization ratio are what improve your score.
• High Income, Low Score: 
  It’s possible to have a high income but a poor credit score if credit is not managed responsibly.

Myth 11:
You can pay someone to fix your credit score quickly

• Reality: 
  There is no quick fix for improving your credit score; it requires time and responsible financial behavior.
• Caution: 
  Be wary of companies that promise fast, guaranteed credit fixes as they may be scams.
• Effective Repair: 
  Focus on paying debts, correcting errors on your credit report, and maintaining good credit habits.

Myth 12:
Your marital status impacts your credit score

• Reality: 
  Marital status itself does not directly affect your credit score.
• Shared Financial Responsibilities: 
  Joint loans or credit cards with a spouse can impact both partners’ credit if not managed properly.
• Individual Activities: 
  Your credit score is based on your individual financial activities, not your relationship status.