There’s a lot of misinformation about how credit scores actually work.

And because the formulas aren’t public, myths spread quickly and easily.

Here’s what you really need to know 👇

1️⃣ “Too many credit cards will hurt my score”

Having multiple credit accounts doesn’t hurt your score if they’re managed well.

✔️ cancelling old cards removes good history

✔️ long-standing accounts boost your score

✔️ balances should stay well below your limits

The real issue is applying for new credit too often — not how many accounts you have.

2️⃣ “Using credit always builds my score”

Using credit only helps when balances are low and payments are made on time.

✔️ low utilization improves scores

✔️ on-time payments strengthen history

✔️ high balances reduce your rating

Credit use must be controlled and consistent.

3️⃣ “Paying my utilities on time boosts my score”

Utility companies do not report positive payment history.

✔️ they only report if you don’t pay

✔️ municipalities and service providers report defaults

✔️ overdue tickets and fines can appear as collections

Paying on time avoids harm — but it doesn’t build credit.

4️⃣ “Checking my own score will decrease it”

There are two types of inquiries:

✔️ soft inquiries (no impact)

✔️ hard inquiries (small impact)

Soft checks include pulling your own report or receiving pre-approval offers.

Hard checks happen when you apply for credit and can affect your score slightly.

Too many hard inquiries can be a red flag to lenders.

5️⃣ “Once a payment is late, there’s nothing I can do”

Lenders are often willing to work with you if issues are addressed quickly.

✔️ call the creditor immediately

✔️ arrange payment

✔️ request a reversal

One late payment doesn’t define your entire credit profile — but repeat issues will.

💬 Final Thought

Understanding how credit actually works helps you avoid mistakes, protect your score, and stay mortgage-ready. Message The Frontline Mortgage Group for more info.