This guide clarifies the complexities of credit scoring by debunking ten prevalent misconceptions that often mislead consumers. The author explains that income levels and debit card usage have no impact on scores, while closing accounts or paying off loans can unexpectedly cause a temporary dip. Key factors that truly determine creditworthiness include payment history, credit utilization, and the variety of accounts a borrower maintains. Maintaining a high score is essential for securing lower interest rates and greater financial flexibility on major purchases. Ultimately, the text emphasizes that informed debt management is more effective for long-term financial health than following common but inaccurate assumptions.

https://retireyoungish.com/2025/12/26/10-common-credit-score-myths-what-actually-affects-your-credit/