Credit scores play an important role in every large financial decision or investment, like buying a home. It helps determine whether you qualify for a mortgage and what interest rate you receive. In many ways, it’s the gatekeeper between you and your financial goals. That’s why it’s important to know what’s true and what’s not true when looking at your credit score.

Don’t let incorrect information about credit scores deter you from your goal of homeownership. Here are nine myths and facts that you should know before applying for your new home.

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MYTH #1

Closing out old, active accounts will help your credit score.

FACT – Your credit score is partially based on your length of credit history and your utilization rate. By closing old accounts, you can make your credit history appear shorter and as a result, actually decrease your score. It can also reduce the total amount of available credit, which can also affect your score.

MYTH #2

Opening (but not using accounts) will help your score.

FACT – Your credit score is affected by how well you manage the credit you do have over a period of time, not by how many credit cards you have with available balances.

MYTH #3

You should avoid using your credit cards at all.

FACT – If you’re not using your credit, you’re not building credit history. Use your credit cards from time to time and promptly pay off the balance.

MYTH #4

Dispute letters can clean up your bad credit.

FACT – Dispute letters may force the removal of negative items temporarily, but once the lender can prove the record’s accuracy, it will reappear on your credit.

MYTH #5

Paying off old debts and judgments will help your score.

FACT – Don’t expect a “negative” to disappear by paying it off. Negative records remain on your credit for 7 to 10 years, regardless of any remedies you made.

MYTH #6

Credit inquiries hurt your score.

FACT – Inquiries alone do not make a big enough change in your credit score to make a difference when it comes to lenders.

MYTH #7

Using a credit counseling services lowers your score.

FACT – Credit counseling services no longer figure into the FICO scoring system. So although your report might indicate you are receiving credit counseling, using those services won’t lower your score.

MYTH #8

There’s a set formula for obtaining great credit.

FACT – Credit is a very individual thing. Credit scores look at everything and take it all into account.

MYTH #9

You can get a perfect credit score.

FACT – Getting a perfect score of 850 is nearly impossible. Your credit score is a reflection of your credit risk, regardless of your credit history. There is always a risk.

Understanding what affects your credit score can prepare you for buying a home and possibly get you a better interest rate. Learn more on our Mortgage Resources page or Contact Us to get in touch with one of our mortgage professionals today!

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About Acrisure Mortgage

Acrisure Mortgage (formerly FBC Mortgage, LLC) is a Top 10 national mortgage lender headquartered in Orlando, Florida. Licensed in 49 states and supported by more than 19,000 dedicated professionals across Acrisure, we specialize in residential mortgage lending through both retail and wholesale/correspondent channels. Our comprehensive offerings include purchase, refinance, construction and renovation loans—tailored to meet the unique needs of homebuyers, homeowners and partners nationwide.

We are proud to serve as a trusted partner to many of the nation’s largest homebuilders and real estate professionals, with a strong foundation of loyal, satisfied clients. Recognized for our commitment to service, innovation and operational excellence, Acrisure Mortgage has received numerous national accolades, including Top 50 Mortgage Companies, Best in Loan Delivery and Best Place to Work honors.

As part of the Acrisure family, we are backed by a global fintech leader that shares our values of innovation, integrity and service. Together, this empowers us to expand our capabilities, leverage world-class technology and resources, and grow alongside the clients and communities we serve.