5 Credit Score Myths (and What to Do Instead in 2025)

Don’t let bad advice ruin your credit. Discover the truth behind 5 common credit score myths and learn how to actually raise your score in 2025. Get expert tips from Nygaard Credit Solutions.

Believing Credit Myths Can Cost You More Than You Think

There’s a lot of outdated, misleading, or just plain wrong information floating around about how credit works. And following bad advice can do serious damage to your financial future. At Nygaard Credit Solutions, we’re here to clear things up and set the record straight.

Here are five of the biggest credit myths people still believe in 2025 — and what to do instead.

Myth #1 – Checking Your Credit Score Hurts Your Credit

Truth: Checking your own credit score is called a “soft inquiry,” and it does not hurt your score. Only “hard inquiries” from lenders (like when you apply for a loan or credit card) may have a small impact.

What to Do Instead: Check your score regularly using tools like IdentityIQ or Credit Karma and review your full reports often to catch errors early.

Myth #2 – You Should Avoid Credit Cards to Protect Your Credit

Truth: Avoiding credit entirely won’t help your score — it actually gives you no credit history to base a score on.

What to Do Instead:

• Use a secured credit card or starter credit builder tool like Kikoff

• Keep balances low and make on-time payments to build positive history

You don't need to carry debt - just show responsible use.

Myth #3 – Paying Off Collections Automatically Improves Your Score

Truth: Paying off a collection doesn’t always raise your score — the account may still show as a negative item.

What to Do Instead:

• Dispute unverifiable or outdated collection accounts

• Negotiate a pay-for-delete agreement if possible

• Consider working with a credit expert who understands Metro 2 compliance and FCRA regulations

Myth #4 – You Need to Carry a Balance to Build Credit

Truth: This one’s a total myth. Carrying a balance month to month only costs you in interest — it does not boost your score.

What to Do Instead:

• Pay your balance in full each month

• Use less than 10–30% of your available credit

• Keep older accounts open to show long-standing credit history

Myth #5 – You Can’t Improve Bad Credit Without Waiting 7 Years

Truth: While negative items can stay on your report for up to 7 years, that doesn’t mean you have to wait that long to improve your score.

What to Do Instead:

• Dispute inaccurate information using your legal rights under the FCRA

• Add new, positive accounts to your profile (rent reporting, secured cards, etc.)

• Get personalized help to create a targeted rebuild plan

Real Credit Help, No Guesswork

The truth is, there’s a lot of noise out there — and not all of it is helpful. But understanding your credit and using the right tools can change everything.

If you’re tired of guessing and ready to see real results, Nygaard Credit Solutions is here to help you:

1. Dispute negative items

2. Build a strong credit foundation

3. Monitor your progress

Start today with our $59 Ultimate Bundle — everything you need, all in one place.

Check your score with IdentityIQ to see where you stand - https://www.identityiq.com/sc-securepreferred.aspx?offercode=431293IP

You’ve got goals. Let’s make your credit match.