Archive · 25 Sep 2025
Credit Score Myths: What You Need to Know
A credit score shows how good you are at handling money and paying back loans.
Some people believe false things about it.
Checking your score doesn't lower it, but many loans at once can hurt your score.
Closing old cards might be bad.
Having no loans doesn't mean you have a great score.
Making smart choices is key to build a good credit score.
Many borrowers avoid checking their credit scores.
Taking multiple loans at once can negatively impact your score.
Closing old cards can decrease your credit limit.
A low credit score can be improved with financial discipline.
Not having loans doesn't automatically mean a good score.
- Who
- Borrowers and Lenders.
- What
- Common myths about credit scores.
- When
- N/A
- Where
- Tier I–III cities were surveyed.
- Why
- To help borrowers manage credit responsibly.
- Good Credit Score
- 750 or above
- Checking Own Score
- Does not affect score (soft inquiry).
- Multiple Loans
- Applying for too many at once can hurt your score.
- Closing Old Cards
- May decrease your total credit limit, increasing credit utilization, and potentially hurting credit history.
- Building Credit
- Requires consistent financial discipline.
- Prepaid Cards
- Do not build credit history as they don't involve borrowing.
