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3 Credit Score Myths to Ignore
Do not let these myths slow down your credit-building journey
What is a myth? A myth is an idea that is widely believed but is false. When it comes to credit scores, such as your FICO Score, there are all kinds of myths stopping people from experiencing the benefits of building your credit profile for the long term. The following are three credit score myths that you should always ignore:
1. Checking Your Credit Score Lowers It
2. Having Multiple Credit Cards Is Bad for Your Credit Score
3. You Need to Carry a Balance to Build Your Credit Score
1. Checking Your Credit Score Lowers It
Checking your credit score 100+ times per day will not lower it. Checking your credit score is a soft inquiry, meaning it does not affect your credit worthiness. I’d say it is a good practice to check it at least once weekly to know that you are in good standing. My favorite website to check my FICO Score is Experian.com.
2. Having Multiple Credit Cards Is Bad for Your Credit Score
Having multiple credit cards is not bad for your credit score. Yes, a hard inquiry you receive from applying for a credit card will temporarily lower your credit score in the short term and remain on your credit report for approximately two years. In the long run, having multiple credit cards and paying their full statement balances monthly will benefit you. As of July 2022, I have five credit cards and a 750+ FICO Score.
3. You Need to Carry a Balance to Build Your Credit Score
You do not need to carry a balance on your credit card to build your credit score. Paying your full statement balance monthly and all your credit cards is the best thing to do. Avoid making minimum payments because interest will eventually get to you and cause you to start owing more and more money.
Do not let myths hurt your credit-building journey. Being a responsible user of credit cards allows you to position yourself for lower interest rates on loans such as car notes and mortgages when the time comes. Let me know other credit score myths in the comments that people should ignore.
