Understanding the truth behind credit can save you stress — and money!

1. “Checking your credit score hurts your credit.”

Truth: Checking your own score is a soft inquiry and has no impact on your credit. Only hard inquiries(like applying for a loan or card) can affect it.

Tip: Monitor your credit regularly to stay informed and safe.

2. “You have to carry a balance to build credit.”

Truth: You can build credit by using your card and paying it off in full every month.

Carrying a balance only leads to interest charges — not a better score.

3. “Closing old credit cards helps your score.”

Truth: Older accounts help your credit history. Closing them can hurt your credit age and raise yourcredit utilization ratio. If the card has no annual fee, consider keeping it open.

4. “Paying off debt erases bad credit history.”

Truth: Paying off debt is smart, but negative marks (like late payments) can remain on your report forup to 7 years. Focus on building positive history moving forward.

5. “Your income affects your credit score.”

Truth: Your income is not part of your credit score. Scores are based on payment history, credit usage, and other behaviors — not your paycheck.

Lenders may ask about income, but it’s not calculated into your score.

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Bottom Line:

Don’t let myths mess with your money. The more you know, the better your credit can grow.

Remember, UBI Federal Credit Union is local and here for you! Please let us know how we can help with yourbanking and financial needs! 860-747-4152 or find us at www.UBIFCU.com