Ever heard that closing an old credit card will boost your score? Or that carrying a balance shows you’re “using credit wisely”?
Both of those are complete myths. Trust me — I study credit cards for a living, and have helped hundreds (maybe thousands?) of people raise their credit scores by simply learning myths vs. facts.
So let’s clear the air. Here are five top credit card myths that can do real damage to your score — and what the truth actually is.
1. Closing old cards helps your score (spoiler: it doesn’t)
A lot of folks think closing a credit card will “clean up” their credit. But in reality, it usually hurts their credit score.
Here’s why. Two major factors in your credit score are your credit history length and your credit utilization ratio.
- Credit history looks at how long your accounts have been open. Older is better.
- Utilization ratio is how much of your available credit you’re using. Lower is better (below 30% is ideal).
When you close an old credit card, you shrink both of those categories. Your history gets shorter and overall utilization gets higher.
Pro tip: If you’re not using an old card, consider keeping it open and using it once every few months for a small purchase. If it has an annual fee, call the bank and try downgrading to a no-annual-fee card.
2. Carrying a balance improves your credit score
Nope. Nope. Nope! This one is a straight-up myth.
The goal is never carrying a balance on your credit card. Not only will this avoid interest charges, but it shows lenders you’re responsible and pay all your bills on time.
Carrying a balance just means you’re giving money to the bank in the form of interest (and often at double-digit rates.)
If you’re looking for a card to pay off purchases over time without interest, consider a 0% intro APR card instead. Check out our favorite 0% intro APR credit cards for 2025 and start saving on interest.
3. Checking your credit score lowers it
Checking your own credit score is considered a soft inquiry. This does not impact your score.
Only “hard inquiries” (like when you apply for a loan or new credit card and a lender pulls your credit) can ding your score. And even then, it might only go down a few points.
The truth is you should be checking your score regularly. Staying on top of your credit activity lets you catch mistakes, and make improvements over time.
I personally check mine monthly through my banking app. Most credit card companies track your score and have free monitoring tools.
4. All credit cards are evil
This is like saying all cars are dangerous. Sure, there’s real risk if you misuse credit cards — they can get you in horrible financial trouble.
But when used wisely, credit cards can actually boost your score over time.
The trick is to build the right credit card habits:
- Pay your bills on time, every time (this is the number one factor in your score)
- Only buy stuff you can actually afford
- Keep your utilization low
- Don’t apply for credit too often
Credit cards aren’t evil. They’re just a form of payment.
In fact, by using them the right way, you’ll not only boost your score, you can earn serious rewards. Like cash back, travel perks, fraud protection, and even price matching. Explore the best credit cards for rewards and perks right here.
5. A high credit limit is bad for your score
This one surprises people. Having a higher available credit limit actually helps your credit score.
That’s because it shows lenders you’re using way less than you could be — which is a sign of responsible usage.
For example, if you have a $5,000 limit and charge $1,000, your utilization is around 20%. That’s a decent credit utilization ratio.
But, if you have a $20,000 limit and charge $1,000, your utilization is just 5%. That’s even better! A big green flag for lenders.
In short: High-limit credit cards can actually improve your score and make you look more desirable to lenders. They also give you more breathing room.
The bottom line
Believing the wrong info — even with good intentions — can send your credit score in the opposite direction.
Smart habits like paying on time, keeping cards open, and using your credit responsibly will always pay off in the long run.
Compare today’s top-rated credit cards and find one that fits your goals.
