1. once you have a bad credit score, you can’t rebuild it

Your score is based on your credit history. While you can’t change your credit past, you can take steps for your future, like making on-time payments and learning more about money and credit. On-time payments add positive info to your credit history. And as your negative info gets older, it has less of an impact on your credit score.¹

2. if you pay off a debt, any late or missed payments on it are removed

Payments can remain on your credit report for up to seven years,² even after the debt is paid. A paid-off account isn’t deleted from your credit report, it’s listed as “paid.”³ It’s still smart to pay off your debts to reduce your total debt and show your willingness to repay your obligations.

3. checking your credit hurts your score

Every time someone checks your credit report, a notation called an “inquiry” is added to it. An inquiry only affects your score if it’s related to a credit application you’ve submitted, because that application suggests you’ll be adding debt. But looking at your own credit report won’t affect your score.⁴

4. closing a credit card will help your credit score

If you have a credit card you don’t use, closing it is unlikely to improve your credit score. It’s possible that it may actually lower it. That’s because it may change your credit utilization rate. Your credit utilization rate is a calculation credit-scoring companies use to measure how much of your total revolving credit limits are being used.

When you close an unused account, you reduce your total revolving credit limits, so your credit utilization goes up. Of course, if an unused card creates a temptation to spend, you may be better off in the long run by closing the account.⁴

5. your credit score can keep you from getting hired

Potential employers can’t see your credit score. But they can look at a version of your credit report that’s different from what lenders would see. It excludes info like date of birth, account numbers, details about your spouse or anything that could violate equal employment laws. Since your credit score is meant to show creditworthiness to a lender, it’s not something a potential employer would use to make a hiring decision.⁵

6. if your spouse has good credit, you don’t have to worry about yours

You have your own credit report linked to your Social Security number.¹ It can affect you and your spouse’s ability to get credit because when couples apply together, both of your credit histories and scores are considered. That may mean higher interest rates, fees or even being denied because one of you has a poor credit history.

7. credit scores are unfair to some groups

Credit scores are based only on credit-related info, not factors like gender, race and marital status, which the Equal Credit Opportunity Act (ECOA) doesn’t let lenders consider. Credit scoring has proven to be an accurate, consistent measure of repayment for all people who have some credit history.⁶

8. credit scoring is an infringement on your privacy

Credit scoring evaluates the same info lenders already look at – your credit report, credit application and/or your bank file. A credit score is simply a numeric summary of that info.

¹https://www.experian.com/blogs/ask-experian/credit-education/faqs/credit-myths/
²https://www.equifax.com/personal/education/credit/report/articles/-/learn/remove-late-payments-credit-report/
³https://www.experian.com/blogs/ask-experian/how-do-i-get-a-paid-collection-off-my-credit-report/
⁴https://www.experian.com/blogs/ask-experian/11-credit-myths-dont-fall-for-em/
⁵https://www.experian.com/blogs/ask-experian/do-employers-check-credit-scores/
⁶https://www.myfico.com/credit-education/credit-scores/credit-score-misconceptions