Many myths about credit scores can have serious consequences, affecting your ability to qualify for loans. One common myth is that checking your own credit report will hurt your score, which is false. In fact, reviewing your report can help you identify errors, improve your credit, and catch signs of identity theft.

Another misconception is that carrying a 30% credit card balance helps build good credit. In reality, low balances are better for your credit scores and your wallet. Keeping your credit utilization ratio low shows lenders you don’t rely on credit cards for expenses. Paying off your balance in full each month can also help avoid high interest charges.

Improving your credit takes time, as changes may not reflect immediately on your credit reports. It can take months or even years to build good credit. Similarly, paying off old collection accounts may not always improve your credit scores. It’s essential to understand the impact of different types of debt on your credit before taking action.

While you have the right to dispute errors on your credit report, you cannot remove accurate information. Some individuals and credit repair companies may attempt to remove negative but accurate information. Wealth does not directly impact your credit scores, as income is not a factor in determining your creditworthiness.

Negative events like bankruptcy, foreclosure, or repossession can damage your credit scores, but the impact lessens over time. Missed debt payments, repossession, foreclosure, and Chapter 13 bankruptcy typically stay on your report for 7 years, while Chapter 7 bankruptcy and positive credit information can appear for up to 10 years. As negative information ages, its impact decreases.

Read more at Yahoo Finance: 7 credit score myths you should stop believing