The Top 5 Credit Report and Score Myths

Credit myths and urban legends are incredibly common. The credit system is complicated, so it's no wonder that incorrect information spreads quickly. In this article, we’re sharing the top five credit myths and giving you the real answers:

MYTH 1: Checking Your Credit Hurts Your Score

Nope! Checking your own credit doesn't count as a "hard inquiry" and doesn't damage your credit score. You can check your own credit reports and credit scores as often as you would like without harm. Your credit scores are only hurt by inquiries from a financial institution or business checking your credit as part of an application. 

MYTH 2: Closing Old Credit Accounts Is a Good Idea

Closing old credit accounts can actually damage your credit scores significantly. You'll never be able to improve your credit by closing a credit card or loan. Old credit accounts help your credit by increasing your credit age and making it look like you have more available credit. It's a good idea to keep your old accounts open and to use them at least a few times a year.   

MYTH 3: The 3 Credit Bureaus Share Records

Equifax^®, Experian^®, and TransUnion^SM are independent companies and don't share credit data with each other. Your credit reports from each bureau can vary significantly as a result. For example: you may have an account that only reports to one of the three bureaus each month. It is important to check all three of your credit reports regularly to identify these differences.  

MYTH 4: Your Credit Reports Merge When You Get Married

Your credit report is tied to your individual Social Security number. When you get married, your credit report doesn't automatically merge together with your spouse's data. However, any new joint or co-signed accounts that you open together can appear on both your credit reports. Be extra careful with these shared accounts — any late payments can damage both your credit scores.  

MYTH 5: It Is Impossible to Have a Perfect 850 Credit Score

Achieving the perfect credit score isn't easy, but it is possible. You'll need to have over seven years of on-time payments, responsible credit card debt usage, a mix of credit and loan accounts, and no recently applications for new credit. Luckily, a credit score above 750 is easier to obtain than a perfect 850 and will also help you qualify for the best deals. 

Now you know the truth behind these top 5 credit report and credit score myths.

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