Should I close old credit cards I don't use?

Generally no. Closing old credit cards reduces your available credit (increasing utilization) and eventually removes that account's age from your credit history. Keep old cards open and use them occasionally for small purchases to prevent issuer closure. The only exceptions: cards with annual fees you can't justify, or if you genuinely can't control spending with available credit.

Does checking my own credit score hurt it?

No. Checking your own credit report or score is a soft inquiry that never affects your score. You can check as often as you want. Only hard inquiries from lenders when you apply for credit can temporarily lower your score. Self-monitoring is always safe and recommended.

Is the 30% credit utilization rule accurate?

The 30% threshold isn't a magic rule. Credit utilization is a gradient - lower is always better. While staying under 30% is acceptable, optimal scores typically come from utilization under 10%. FICO rewards the lowest utilization, so there's benefit to going from 30% to 10%, or from 50% to 30%. Utilization has no memory, so your score improves immediately when you reduce it.

Do 609 dispute letters work to remove accurate negative items?

No. The '609 letter' myth misinterprets FCRA Section 609, which only grants you the right to request your credit file contents - not remove accurate information. To dispute errors, use FCRA Section 611 (15 U.S.C. § 1681i) which requires bureaus to investigate inaccurate information. For disputes directly to furnishers, use Section 623. Only factually incorrect information can be successfully disputed.

Will paying interest on my credit card build credit faster?

No. FICO scoring doesn't know or care if you pay interest. What matters is on-time payments (35% of score) and low utilization (30%). You build the same credit by paying your full balance every month interest-free as you do by carrying a balance and paying interest. Never pay interest intentionally - it's wasted money with zero credit benefit.

Are Credit Karma scores accurate for real lending decisions?

Credit Karma shows VantageScore 3.0, which is educational but rarely used by actual lenders. Over 90% of top lenders use FICO scores, which calculate differently and often show different numbers. Credit Karma is useful for monitoring accounts and spotting errors, but don't rely on those numbers for loan applications. Your real FICO score can be 20-50+ points different in either direction.

Top Credit Myths Debunked

Welcome to our series on common credit myths! Understanding the truth behind these misconceptions is crucial for building and maintaining a healthy credit profile.

Start here: New to credit reports? Learn how to get your free TransUnion credit report before diving into these myths.

For comprehensive credit improvement strategies based on facts (not myths), see our guide on how to build your credit. When you find errors on your credit report, our dispute process guide shows you the most effective way to fix them.

Featured Myths:

Should You Really 'Dispute Everything' to Fix Your Credit?
Should You Never Close Your Oldest Credit Card?
Is a Hard Inquiry Really Only Worth a Few Points?
Does More Accounts Mean Better Credit Mix?
Experian Boost: Real Help or Just a Gimmick?
Rebuilding Credit: Is Opening New Accounts the Best Way?
The 30% Credit Utilization Rule: Fact or Fiction?
Credit Score vs. Credit Profile: What Really Matters for Approval?
Does Closing a Credit Card Erase Its History or Hurt Your Score?
Do Multiple Monthly Payments Build Credit Faster?
The Myth of a Single Credit Score: Why You Have Dozens
Does Paying Debt Slowly Build More Credit?
Credit Score Changed? There's Always a Reason
Are Credit Limits a Direct FICO Scoring Factor?
Do Hard Inquiries 'Age' and Slowly Lose Impact?
Credit Karma 101: The Good, The Bad, and The Misleading
Goodwill Letters: Can They Really Get Late Payments Removed?
Are Online Credit Card 'Approval Odds' Accurate?
(More myths will be listed here as they are created)

Top Credit Myths Debunked

Featured Myths:

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