Credit Myths You Need to Stop Believing Before 2026

When it comes to credit, misinformation spreads faster than facts. Between social media “gurus,” outdated advice, and word-of-mouth tips, it’s easy to fall for myths that can actually hurt your credit instead of helping it.

As we approach 2026, it’s time to clear the air and take charge of your financial future with real, proven credit knowledge. Here are the top credit myths you need to stop believing — starting now.

Myth #1: Checking Your Credit Lowers Your Score

Truth: Only hard inquiries affect your credit score — not soft checks.

When you check your own credit through a trusted credit monitoring service, it’s considered a soft inquiry. These have zero impact on your score.

Pro Tip: Monitoring your credit regularly is one of the best habits you can form. You’ll catch errors early, track your progress, and protect yourself from identity theft. Start with Credit Hero Score — a trusted tool that lets you see all three of your scores in one place.

Myth #2: You Need to Carry a Balance to Build Credit

Truth: You don’t have to owe money to grow your score.

Carrying a balance month-to-month only costs you interest. What actually boosts your score is using credit responsibly — making small purchases and paying them off in full before your due date.

Keeping your credit utilization (the percentage of credit you use) below 30% — or even better, under 10% — shows lenders you manage credit wisely.

Myth #3: Closing Old Accounts Improves Your Score

Truth: Closing accounts can actually hurt your score.

When you close an old account, you shorten your credit history and reduce your total available credit, both of which can negatively impact your score.

Instead, keep older accounts open (especially those with no annual fees). Use them occasionally and pay them off to keep them active.

Myth #4: Paying Off Debt Instantly Fixes Bad Credit

Truth: Paying off debt is great — but it’s not an instant score boost.

While paying down debt helps over time, your credit score reflects your entire history — including how long you’ve had accounts and whether you’ve made payments consistently.

Be patient. Credit repair is a journey, not a sprint. Consistency, not quick fixes, leads to lasting results.

Myth #5: You Only Have One Credit Score

Truth: You actually have dozens of credit scores.

Each credit bureau (Equifax, Experian, and TransUnion) has its own data and scoring models. Plus, lenders use different versions depending on the loan type (auto, mortgage, etc.).

That’s why it’s so important to review all three bureaus — not just one.

Believing credit myths can hold you back from financial progress. The truth is simple: good credit comes from awareness, consistency, and responsible habits.

As we step into 2026, make a commitment to know your facts, monitor your credit, and protect your progress.

Stay informed and in control with Credit Hero Score — track your credit from all 3 bureaus, spot errors early, and enter the new year empowered with real financial confidence.