2 Common Credit Score Myths That Can Tank Your Finances — And How To Fix Them

Core Insights - The article emphasizes the importance of understanding credit scores and debunks common myths that can negatively impact personal finances [1][2] Group 1: Myths About Credit Scores - Myth 1: Carrying a balance on credit cards helps improve credit scores, which is incorrect as it leads to higher interest payments and increased credit utilization [3][4] - The correct approach is to pay off credit card balances monthly to maintain a low credit utilization ratio, ideally under 30%, and even better under 10% [5] - Myth 2: Credit scores reflect wealth, whereas they actually measure consistency in financial habits, such as timely payments and low balances [6][7]