Credit Myths That Are Hurting Your Homeownership Goals

When it comes to buying a home, credit plays a huge role, but not everything you’ve heard about it is true. Believing the wrong things can slow down or even derail your homeownership dreams. Let’s bust some common credit myths:

Myth 1: You need perfect credit to buy a home.Truth: While a higher credit score can get you a better rate, you don’t need a 780+ score to qualify. Many programs allow scores in the 620–700 range.

Myth 2: Checking your credit will hurt your score.Truth: Soft inquiries, like checking your score or pre-qualification, don’t affect your credit. Only hard inquiries from lenders do, and they’re temporary.

Myth 3: Carrying balances helps your score.Truth: Paying off debt on time and keeping balances low helps more than carrying a balance to “boost” your score.

Myth 4: Closing credit cards will improve your score.Truth: Closing old accounts can lower your score because it reduces your credit history and available credit.

Myth 5: Your credit report is always accurate.Truth: Mistakes happen. Regularly check your credit report to ensure there are no errors that could hurt your loan approval.

Understanding your real credit situation can help you plan smarter, qualify faster, and save on interest. Don’t let myths hold you back; knowledge is your first step to homeownership.