Top 7 Credit Myths That Are Wrecking Your Score

And yes, your cousin on Facebook is wrong.

Let’s start with a truth bomb: most of what people think they know about credit is either outdated, exaggerated, or completely made up by that one “finance guru” who swears they fixed their score by manifesting it.

At Karmaundo, we’re not about fluff, fear tactics, or recycled advice. We’re about facts—and undoing the bad karma of believing dumb credit myths.

So let’s break it down. Here are the top 7 credit myths that are low-key wrecking your score, your sanity, and maybe even your shot at that house with the walk-in pantry.

Myth #1: Checking your own credit hurts your score.

The Truth:

Nope. Not even a little. When you check your credit (a "soft inquiry"), it has zero impact on your score. It’s only “hard inquiries”—like when a lender pulls your report—that might cause a temporary dip.

So check away. Get cozy with your report. Light a candle if it helps. It’s your data—you should know what’s in it.

Myth #2: You need to carry a balance to build credit.

The Truth:

That’s a no from us, dawg.

Carrying a balance doesn’t build credit—it builds interest charges. What actually matters? Using credit and paying it off on time. You’re not proving anything by leaving a balance, except that you like giving the bank free money.

Myth #3: Closing old accounts will improve your score.

The Truth:

Wrong again. Closing an old account can actually hurt your score, especially if it’s a card with a long credit history or low balance. That age and available credit help your utilization rate and length of credit history—two things the algorithm actually cares about.

Unless there’s a valid reason (like an annual fee you don’t want to pay), leave that old card open and let it chill.

Myth #4: Paying off a debt means it disappears from your report.

The Truth:

We wish. Paid or not, negative items like collections and charge-offs can stay on your report for up to seven years. Paying it off is good—but don’t expect it to vanish like it never happened.

That’s where we come in: we dispute inaccurate, outdated, or unverifiable negative items and work to get them removed. You paid it? Cool. Let’s clean it up too.

Myth #5: You only have one credit score.

The Truth:

You actually have dozens. That’s right—there’s no “one score to rule them all.” Different lenders use different scoring models (FICO 8, FICO 9, VantageScore, etc.) depending on what you’re applying for.

So if you’ve ever checked your score and then got a completely different number at the car dealership, no—you’re not crazy. The system is.

Myth #6: Debit cards build credit.

The Truth:

Nope. Not even a little.

Debit cards are tied to your checking account, not a credit line. You can swipe ‘til your balance runs dry, but your credit report won’t notice. If you want to build credit, you’ll need to use credit products—like a secured credit card or a credit-builder loan—and handle them responsibly.

Myth #7: You can’t fix bad credit. You just have to wait.

The Truth:

Biggest myth of them all. And frankly, it’s a dangerous one.

Yes, time helps. But sitting around hoping your score magically improves isn’t a strategy—it’s a stall. You can fix bad credit. You can challenge inaccurate or outdated items. You can rebuild smarter and faster.

We’ve helped people go from denial letters to approval emails in months. The system wants you to think you’re stuck. We’re here to prove otherwise.

So... What Now?

If any of these myths made you go, “Oh no, I’ve definitely believed that,” don’t stress. You’re not alone. The credit world is designed to be confusing—and frankly, profitable for the people who keep you confused.

That’s why Karmaundo exists: to help you cut through the noise, fix what’s broken, and finally stop letting myths and misinformation run your financial life.

The Karmaundo Difference

We don’t charge you monthly and drag things out. We don’t make vague promises. And we don’t feed you recycled advice from 2011.

Instead, we give you:

• A flat-fee package (no surprise charges)

• Aggressive disputes with all three bureaus

• Real 1-on-1 coaching

• A money-back guarantee if you’re not happy

• And a dashboard so you can track your progress without guessing

We’re not just here to repair your credit. We’re here to undo the system’s BS—and help you build something better.

Final Thought: The Truth Feels Better

Credit myths are like bad exes—they linger, they confuse you, and they mess with your future. It’s time to kick those myths out and move on. Your credit comeback starts with the truth. And maybe a flat-fee package that doesn’t ghost you. Explore our packages now.