If you’re looking to improve your credit score then you’ll want to make sure that the action you take to do so is having as much impact as possible. With methods used to create credit scores so opaque, it’s no surprise that a number of myths have grown around what will help improve your score. To help you take the most effective action to improve your credit rating, we’ve compiled seven of the most common myths – and why they are not true!

Checking My Credit Score Will Damage My Credit Score

This is one of the most common misunderstandings around credit scores, but it’s just not true. You can check your credit score as many times as you like and it won’t affect your rating one bit. So how did this myth become so prevalent? Actually, it’s quite easy to see where the confusion comes from. Repeated ‘hard’ credit checks, carried out by a credit provider when you make an application for credit, do affect your score when several of them occur within a short space of time. This is because it indicates an urgent need for cash – not something that fills potential lenders with confidence. But checking your own credit score doesn’t carry the same implications and in fact, it can even be a sign of responsible credit management (though unfortunately you won’t get points for it ).

Several companies offer free credit checks online. Some of the most well-known are ClearScore (for your (Equifax Credit Rating) Noddle, (for your Callcredit score) and CreditExpert (for your Experian credit rating)

I Only Have One Credit Score

As indicated by the paragraph above, there are three main credit reference agencies. Each of these has their own scoring system and their own way of calculating your score. But it doesn’t end here. Most lenders will take this score and run it through an algorithm of their own to calculate a score for you based on their specific criteria. It’s actually estimated that there are over 1,000 credit scoring models on the market. So what does that mean for you?

Well, despite the large number of different models, they will all broadly indicate the same thing; you’re unlikely to have a poor credit score with one and a gleaming record with another. But it is worth remembering that that lenders agree (or disagree) to provide credit for a number of reasons at different times. So shop around – a refusal from one lender does not necessarily mean you will be refused by everyone. (Just bear in mind the points covered in myth #1 and avoid making too many applications within a short space of time)

A Bad Credit Score Lasts Forever

Many people avoid asking for credit because they have experienced financial difficulty in the past, wrongly believing that a black mark against their name lasts forever. This is not the case. A credit score is a temporary snapshot of your current situation and it changes regularly based on the amount you borrow and how punctual you are with your repayments. It is true that any late payments will remain on your record for a minimum of six years which, admittedly, might feel like forever if you are waiting to apply for a mortgage. However, it is also true that the affect a late payment will have on your credit score diminishes over time. If you have been taking steps to improve your score then these more recent, positive indications will have a bigger impact than the historical back mark. In short – don’t be afraid to apply for credit based on previous refusals or financial difficulty.

Closing a Credit Card Will Help Improve My Credit Score

You may have heard the advice (possibly on these pages) that you should close any credit accounts that you are not using such as store cards or dormant credit accounts. This is true, and leads to the natural conclusion that closing a credit card will improve your score. However, as with so many aspects of credit scoring, it’s not quite that straightforward. Simply closing a credit card won’t have a positive effect on your credit score and in some cases, it may even knock it back a few points. This is because credit models don’t measure your score by how much availability you have, but by your ‘credit utilisation’ i.e. how much of your available credit you are using. Most models like to see this hovering somewhere around the 7% – 10% mark. Therefore closing a credit card may tip your credit utilisation over the favoured percentage. If you are thinning down your available credit options, make sure you do so in a way that keeps your credit utilisation at a reasonable rate.

My Credit Score will Merge with my Spouse’s when we get Married

You might share everything else but your credit score is one thing that will remain yours for life. This can actually work in your favour, especially if one partner has borrowed a lot more responsibly than another in the past; any mortgage or loan applications can be made in their name. Be aware that joint accounts will affect both partners’ scores individually.

I Have a Great Job and Lots of Savings. Surely My Credit Score is High?

You’d think so, right? But your credit score is a very particular beast, which feeds only on the amount of money you borrow and pay back. It can be common for ‘cash rich’ people who never have to borrow money to actually have a worse credit score than people with far fewer disposable funds. Even if you don’t need to borrow and are able to live comfortably within your means, it is worth making credit building a habit, just in case you do need to apply for credit at some point in the future.

Rental Payments Have No Effect on my Credit Score

It’s true: until recently rental payments could not be counted towards a credit rating, even when they were made on time for years. But with it becoming harder than ever for first time buyers to enter the housing market, it was clear that something had to change. With Credit Builder, tenants can now build their credit scores by making their payments on time. It’s better for landlords and letting agencies, as tenants have an extra incentive to pay on time. And it’s better for tenants, as finally those substantial monthly payments are counting towards their all-important credit scores.

Interested in making your rental payments count? To sign up free for Credit Builder, click here.