Common credit score myths
Credit-score misinformation is everywhere, from WhatsApp forwards to well-meaning relatives. Here are the biggest myths that lead people to make the wrong decisions, and what the actual bureau practice is.
Last updated: 15 June 2025
Myth 1: Checking my own score reduces it
False. Self-checks are 'soft enquiries' and have zero impact on the score. Only lender-initiated hard enquiries during a loan application briefly reduce the score.
Myth 2: A high salary means a high credit score
False. Salary is not directly reported to bureaus and has no role in score calculation. A high-earner with poor repayment behaviour can have a lower score than a moderate-income person with a spotless record.
Myth 3: I should close old cards to look responsible
False. Closing your oldest card shortens your credit history length and can raise your utilisation ratio. It usually hurts the score.
Myth 4: Paying only minimum due keeps me safe
False. It avoids the late fee, not the interest. Long-term reliance on minimum due signals cash-flow stress and hurts your standing with the bank internally, even if the bureau score doesn't reflect it immediately.
Myth 5: Settling a bad loan is as good as repaying
False. Settlement is a discount offered by the lender, but it gets recorded as 'Settled' on your bureau report and reduces your score for years. Full repayment is always cleaner if possible.