Although our credit scores represent an important facet of our financial well-being, it’s not always easy to know what’s true and what’s false when it comes to how they’re set.

Understanding what can help and what can hurt your score gives you more power to improve it — which, in turn, can help you get approved for lines of credit more easily and secure competitive interest rates on those loans. Maintaining a strong credit score also tends to make life easier, like making it simpler to get approved for apartments and such.

Let’s start by debunking some common credit score myths. 

Checking Your Credit Brings Down Your Score

Many people avoid checking because they believe it’ll bring down the score. This is simply not true. In fact, an important part of managing credit is keeping a watchful eye on your score over time.

This myth likely originates from the true statement that hard inquiries — like when a lender checks your credit score after you apply for a loan — can put a small dent in your score. This is why it’s smart to apply for loans from different lenders within a short window of time; the multiple hard inquiries will only count as a single inquiry.

When you check your own score, it’s a soft inquiry. These will not affect your credit score or show up on your report. So, check your score periodically and take advantage of the free credit reports you’re able to download each year from Equifax, Experian and TransUnion.

All Debt Affects Credit in the Same Way

All debt is not created equal, nor will it affect your credit in the same way. Owing $50,000 on a mortgage is much different than owing $50,000 across a handful of credit cards. Incrementally paying back installment loans can improve your score, while maxing out lines of credit can hurt your score because it makes you appear riskier to lenders.

Always consider the type of debt rather than just the amount.

Negative Information Ruins Your Credit for 7 Years

Say you fall on hard times and miss a credit card payment or two. Is your credit report ruined for seven to 10 years? Not exactly. While your report can bear this negative information for seven to 10 years, its impact fades over that time period.

So, you don’t have to wait years to improve your score. Managing your credit responsibly in the present and taking care of outstanding debts (either by paying them in full or settling) will go a long way toward helping you build your score over the long haul. 

You Can’t Get a Loan with Bad Credit

Another misconception is that it’s impossible to even get a loan with bad credit. While some lenders and loans do have credit score thresholds, others are willing to lend to borrowers with fair or even poor credit.

However, you can expect to pay more in interest to offset the risk denoted by your low credit score. Someone seeking debt consolidation with bad credit will likely see interest percentages in the twenties — think 21 percent or higher —  whereas someone with excellent credit might be able to get a loan between 6 and 15 percent APR.

Loans with bad credit tend to be more expensive, but they absolutely exist.

Income Level Affects Credit Score

It’s easy to assume people who make more money automatically have better credit scores. But the truth is income doesn’t affect credit rating. Credit scores only factor in payment history, amount of debt, length of history, amount of new credit and types of debt.

Loan applications do take into account income when assessing the likelihood of you being able to fulfill the obligation, but credit scores themselves do not judge based on income.

Taking control of your credit score means being able to separate the myths from the truths.