5 Credit Score Myths Debunked: What Really Affects Your Score

The truth about your credit score

Myth #1: Can closing old accounts help improve your credit score?

One of the most common credit score myths is that closing old or unused credit accounts will help raise your credit score.

In fact, closing your accounts can actually hurt or lower it.

One reason is the length of your credit history—the longer you keep that account, the better the effect on your overall score. An older credit account shows lenders your long track record of responsibly borrowing and repaying debt. Closing those accounts shortens that credit history, which in turn can lower your score.

Another way that closing an old credit account can drop your credit score is that it may reduce the variety of your open accounts. A healthy mix of credit types like credit cards, auto loans or mortgages demonstrates that you can handle different forms of credit, which also contributes to your overall score.

Instead of closing older accounts, try focusing on using them wisely and keeping the balances low or paid off monthly. Learn more about how diverse accounts and other ways to improve your credit score.

Myth #2: Does applying for a new line of credit hurt your credit score?

It's easy to assume that credit inquiries that come with applying for a new line of credit, like a car loan or credit card, can automatically hurt your credit score. But that's not always true: What matters is the type of credit inquiry being made and how often you're applying for a new line of credit.

Understanding the difference between a soft inquiry vs. a hard inquiry can help you make smarter financial decisions and potentially improve your credit score.

A credit inquiry occurs when someone checks your credit report. A soft inquiry, like when you check your own score or a lender pre-approves you for a credit card, does not impact your score.

A hard inquiry happens when you apply for a line of credit or when a lender pulls your report to approve you for a loan. These hard inquiries can lower your credit score but are usually only temporary and can remain on your credit report for up to two years.

For example, if you’re trying to find the best rate for a mortgage or auto loan, multiple hard inquiries on your credit report within a short period of time can be treated as a single event. However, limiting unnecessary credit applications is the most effective way to keep your credit score strong.

There are also several ways to check your credit score without lowering it—a smart way to monitor your credit picture.

Myth #3: Does your relationship status impact your credit score?

One of the most widespread credit score myths is the idea that getting married or divorced can directly impact your credit score. In fact, your score is only tied to your individual financial behaviors—not your relationships.

Whether you're single, married or divorced, your credit report and score only has financial facts like as your payment history and outstanding balances, not personal details like marital status.

However, financial decisions you make with a partner can matter. For example, co-signing for a home loan or opening a joint credit or debit account can directly affect your—and your partner’s—score if there are any late or missed payments.

Myth #4: Will checking your own credit score lower it?

Many people avoid checking their credit score because they're afraid it might cause it to drop. This, however, is one of the most misunderstood credit score myths. It doesn’t hurt it at all.

As mentioned previously, pulling your own credit score is considered a soft inquiry, which has no impact on your score.

Regularly checking your score is actually a good way to proactively monitor your progress, catch any potential errors in your score and detect any signs of identity theft or fraud. To help, there are many free and secure tools that make it easy.

Myth #5: Does paying off debt automatically remove it from your credit report?

Another common myth is that when you pay off a debt, it disappears from your credit report. Unfortunately, this isn’t how credit reporting works.

Paid credit accounts—even those that were once past due—can still stay on your credit report for years. When you pay off a car loan or credit card, the account may be updated to show a zero balance, but the account itself isn't deleted.

It’s important to understand that your credit report is a record of your entire financial history, not just a reflection of your current balances. A positive payment history can help you build a strong credit score and may even get you lower or more favorable rates on future loans. However, a negative credit history, like late payments or collection accounts, may remain on your credit report for seven years.

Paying off debt is a significant step toward improving your credit score, but rebuilding your score can take longer and take more consistent effort. You’ll need to keep older accounts open and use credit more carefully. Over time, these tactics can strengthen your score and show lenders that you can manage credit responsibly.

Understand what really affects your credit score

It’s important to understand that your credit score isn’t based on myths or guesswork—it’s built on a combination of consistent financial behaviors. By separating the credit score myths from the credit score facts, you can make better financial decisions that support your long-term goals.

Regularly checking your credit report, using lines of credit responsibly and taking proactive steps to address issues such as fraud or identity theft are some of the most effective ways to improve your credit score. Some financial institutions, including Associated Bank, even integrate simple ways for you to check up on your score within their banking apps.

It’s also a good idea to schedule an appointment with one of our experienced bankers to explore personalized ways to build or improve your credit score.