7 Credit Score Myths Debunked: What Really Affects Your Financial Reputation
Ever wondered why your perfectly responsible friend has a mediocre credit score while your carefree cousin somehow maintains excellent credit? The world of credit scoring is wrapped in misconceptions that can lead even the most financially savvy among us astray. The truth about credit scores is often counterintuitive, and these common credit myths aren't just harmless misunderstandings—they can cost you money and opportunities. Let's clear the fog around these common credit misconceptions and replace fiction with facts that can actually help you establish credit and build financial strength. Myth 1: Checking Your Own Credit Score Hurts Your Score Many people worry that checking their credit score will lower it, confusing personal checks with lender reviews. Here's the truth: when you check your own credit, it's recorded as a soft inquiry , which has absolutely no impact on your credit rating . What's actually happening? Soft inquiries (when you check your o...