Building Your Credit: Myths and Reality


When the COVID-19 pandemic hit, people were overwhelmed by the logistics of sudden and swift stay-at-home orders. Between school closures, supply shortages and new ways of working, there was little time for much else. As many adjusted their spending habits, they also took the time to think more critically about their finances — and some of the government-mandated credit concessions made monitoring credit an especially good idea. A new NerdWallet survey conducted online by The Harris Poll in September asked more than 2,000 Americans how they have managed their credit score during the pandemic, beginning in March 2020. Respondents were also asked to identify common misconceptions about credit scores. The results reveal that plenty of misinformation about credit exists, but it’s possible to cut through the fog and build your score. The first step is some myth-busting.

Credit Score Myths and Tips 39%

of Americans think checking their own credit score can cause it to drop. It won't. Check your credit score often–it's a good barometer of your credit worthiness. 82% of Americans think their credit report includes their credit score. It doesn't. The two are separate tools–track both to stay informed of what creditors see and identify problems early. 47% of American think carrying a small balance on their credit card is better than paying it off in full. It's not. Carrying a balance not only costs you in interest, but also raises your credit utilization, which can impact your score.



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