Credit Score Myths That Could Be Costing You Money

If you’ve ever Googled how to get a mortgage, you’ve probably seen a list of "credit score myths" that sound like rules. The problem is, many of those rules aren’t true at all. Believing the wrong thing can make you miss out on a better loan or pay extra interest. Let’s clear up the confusion so you can focus on what really matters for your home purchase.

Myth #1: You Need a Perfect Score to Qualify

Most people think you need a 800‑plus score to get a decent mortgage. In reality, lenders approve borrowers with scores as low as 620 for conventional loans and even lower for FHA or VA loans. What matters more is the average of your recent scores and how your debt‑to‑income (DTI) ratio looks. A solid 680 can get you a loan with a competitive rate if your overall profile is strong.

Myth #2: Your Score Is Set in Stone After Age 30

Another common myth is that your credit score stops moving after you turn 30. Scores are dynamic and change every time you add a new account, make a late payment, or pay down a balance. Even small actions, like removing an old credit‑card that you rarely use, can shift your score up or down. Keep monitoring your report and correct any errors promptly.

Now that we’ve knocked out the big myths, let’s look at a few other misconceptions that pop up when people talk about credit.

Myth #3: Checking Your Own Score Lowers It. When you pull your own report, it’s a soft inquiry that never affects the score. Hard inquiries—like when a lender runs a credit check—can cause a minor dip, but the impact fades quickly.

Myth #4: Closing Old Accounts Improves Your Score. Closing an old credit‑card often reduces your overall credit limit, which can raise your credit utilization ratio and hurt the score. If you don’t need the card, consider keeping it open and using it for a tiny monthly purchase, then paying it off.

Myth #5: All Debt Is Bad. Not all debt is created equal. A mortgage or student loan that you pay on time shows lenders that you can manage long‑term obligations. The key is to keep balances low relative to credit limits and make payments on schedule.

So, what should you actually do to boost your credit before applying for a mortgage?

• Pay all bills on time. Even one missed payment can drop your score by 100 points.
• Keep credit utilization under 30% of your total limit.
• Don’t open lots of new accounts in a short period.
• Check your credit report for errors and dispute any you find.
• Consider a secured credit card if you need to rebuild credit.

By focusing on these practical steps instead of chasing a mythic perfect score, you’ll be in a better position to negotiate a loan that fits your budget. Remember, lenders look at the whole picture—your income, employment stability, DTI, and payment history—not just a single number.

Ready to put the myths behind you? Grab a copy of your free credit report, run through the checklist above, and start fixing any red flags. The sooner you get your credit in shape, the sooner you’ll be opening the door to your new home.