6 Credit Score Myths You Should Stop Believing In

Last Updated:October 10, 2025, 15:57 IST

Here are six common misconceptions and the real facts behind them.

A credit score is an important number that shows how trustworthy you are with money. Many people believe things about credit scores that aren’t true. For example, some think checking your own score will lower it, or that earning more money automatically makes it better. These are just myths.

Knowing the truth about credit scores helps you manage your money wisely. It can also help you make decisions that slowly improve your score over time. Here, we explain six common myths and set the facts straight.

– Checking Your Score Is Safe

Many believe that viewing your own credit score can reduce it. This is false. When you check your score yourself, it is considered a soft inquiry and does not affect your score. However, when a bank or lender checks your credit score because you are applying for a loan or credit card, it is called a hard inquiry. Hard inquiries can slightly lower your credit score for a short time, usually by a few points.

– Marriage Doesn’t Merge Scores

Many believe that when you marry, your credit score merges with your spouse’s. This isn’t true. Marriage only affects your credit report if you have joint accounts or shared debts. Your individual score remains separate.

– Not All Debt Is Bad

Debt isn’t always harmful. Loans like mortgages or student loans can help build your credit score when paid on time. Mismanaged debt is risky, but responsible borrowing can actually improve your score.

– Income Doesn’t Guarantee a Higher Score

Another common myth is that higher income leads to a better credit score. Credit scores are based on credit behaviour, payment history and outstanding debt, not income. Even someone with a lower salary can have an excellent credit score if they manage credit responsibly.

– Clear Your Credit Card Fully

Some think keeping a balance on a credit card is good for their score. In reality, it is best to pay off the full balance every month. Using more than 30 per cent of your credit limit regularly can negatively affect your credit score.

– There’s More Than One Credit Score

People often think there is a single credit score in India. In reality, each credit bureau (CIBIL, Experian, Equifax, CRIF High Mark) uses its own methods, so scores can vary slightly across agencies.

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