5 Credit Score Myths That Could Be Holding You Back from Buying a Home

Your credit score plays a huge role in buying a home, but there’s a lot of misinformation out there about what actually affects it. Believing the wrong advice could make it harder to qualify for a mortgage—or even lower your score without you realizing it.

Let’s set the record straight by busting five common credit score myths that too many homebuyers believe.

Myth #1: Checking My Credit Score Will Hurt It

✅ Reality: Checking your own credit score does not lower it.

There are two types of credit checks:
✔️ Soft inquiries (when you check your own score or when a lender does a pre-approval check) → No impact
✔️ Hard inquiries (when you officially apply for a loan, credit card, or mortgage) → May cause a small, temporary dip

So, don’t be afraid to check your credit before applying for a mortgage—it helps you understand where you stand!

Myth #2: Closing Old Credit Cards Will Boost My Score

✅ Reality: Closing an old credit card can actually hurt your credit score.

Here’s why:
📉 It shortens your credit history, which is a major factor in your score
📉 It reduces your available credit, increasing your credit utilization (which could drop your score)

Instead of closing old accounts, consider keeping them open and using them occasionally for small purchases to maintain a positive credit history.

Myth #3: You Need a Perfect Credit Score to Get a Mortgage

✅ Reality: You don’t need an 800+ score to buy a home.

While a higher credit score can get you better interest rates, many lenders approve mortgages for buyers with scores as low as 620 (and even lower for some special loan programs).

✔️ A score of 700+ is considered strong and can help you secure great loan terms
✔️ A score between 620-699 is still mortgage-worthy—just expect slightly higher interest rates
✔️ A score below 620 may require improving your credit before buying

Bottom line: Even if your score isn’t perfect, you still have options!

Myth #4: Paying Off Debt Will Immediately Raise Your Score

✅ Reality: Paying off debt can help, but the effects aren’t always immediate.

Your credit score is based on a mix of factors, including:
💳 Credit utilization (how much of your available credit you’re using)
📅 Payment history (whether you pay bills on time)
📜 Credit history length (how long you’ve had accounts open)

Paying off debt can improve your score over time, but if you recently missed payments or closed old accounts, you might not see an instant boost. Patience is key!

Myth #5: A Higher Income Means a Higher Credit Score

✅ Reality: Your income has zero impact on your credit score.

Credit scores are based on how you manage debt—not how much money you make. A high-income earner with poor credit habits (late payments, maxed-out cards, etc.) can have a low score, while someone with a modest income but responsible credit use can have an excellent score.

If you’re working on boosting your credit, focus on:
✔️ Paying bills on time
✔️ Keeping credit card balances low
✔️ Avoiding unnecessary new credit applications

Your credit score is one of the most important factors in qualifying for a mortgage, but don’t let myths or misinformation hold you back. Knowing the truth about how credit works can help you make smarter financial decisions—and bring you one step closer to owning your dream home.

Thinking about buying a home and want to make sure your credit is in good shape? Let’s chat—I’d love to help you get on the right track!