Why Credit Score Myths Are So Persistent
Credit scores sit at the center of the mortgage approval process, yet the way they actually work remains widely misunderstood. Misinformation travels fast — from well-meaning friends to outdated online advice — and believing the wrong things can lead buyers to delay applications, take counterproductive steps, or assume homeownership is out of reach when it isn't.
The stakes are real. A decision made on faulty assumptions — closing an old account, avoiding all credit checks, or waiting years for a "perfect" score — can cost buyers time, money, or opportunities. The myth-and-fact pairs below draw on how the major scoring models and lenders actually operate.
Myth
You need a perfect or near-perfect credit score to get approved for a mortgage.
Fact
Most loan programs set minimum score thresholds well below 850 — and many buyers qualify with scores in the 620–680 range or lower.
The widely circulated idea that only borrowers with scores above 750 or 800 can get a mortgage does not reflect how most lending programs actually work. Conventional loans typically require a minimum FICO score around 620. FHA loans, backed by the Federal Housing Administration, accept scores as low as 580 with a 3.5% down payment — and sometimes lower with a larger down payment. VA and USDA loans have their own guidelines. A higher score generally unlocks better interest rates, but it is not the entry requirement many people assume it to be.
Myth
Checking your own credit score will lower it.
Fact
Checking your own credit report or score is a "soft inquiry" and has no effect on your score whatsoever.
Credit inquiries come in two forms: soft and hard. Soft inquiries — such as checking your own score, background checks by employers, or pre-approval offers — do not affect your credit score. Hard inquiries occur when a lender formally reviews your credit as part of an application decision, and those can have a small, temporary impact. Monitoring your own credit regularly is actually encouraged by financial professionals as a way to catch errors and identity fraud early. Avoiding self-checks out of fear of lowering your score is both unnecessary and potentially counterproductive.
Myth
Shopping around with multiple lenders will tank your credit score due to multiple hard inquiries.
Fact
Major scoring models treat multiple mortgage-related inquiries within a short window — typically 14 to 45 days — as a single inquiry.
Both FICO and VantageScore are designed to encourage rate shopping. When multiple mortgage lenders pull your credit within a condensed timeframe, the scoring models recognize this as a single borrower comparison-shopping, not a sign of financial distress. The exact window varies by scoring model version, but it's generally 14 to 45 days. Getting quotes from three or four lenders in a focused period is a financially sound practice — and one that is unlikely to meaningfully affect your credit score. Also see our article on credit card balance myths for related misconceptions about how credit behavior is scored.
Myth
Closing old or unused credit accounts before applying for a mortgage will help your application.
Fact
Closing old accounts can actually hurt your credit score by reducing your total available credit and shortening your credit history.
Two key components of most credit scores are credit utilization (the ratio of balances to total available credit limits) and length of credit history. Closing an old account reduces your total available credit, which can push your utilization ratio higher — even if your balances haven't changed. It also removes that account's age from your history over time. Many buyers close accounts thinking it signals responsibility, but lenders generally view a longer, varied credit history positively. Unless an account carries fees that outweigh the benefit, it is typically advisable to leave old accounts open, especially in the months before a mortgage application.
Myth
Your income level directly determines your credit score.
Fact
Income is not a factor in calculating your credit score — it is not even reported to the credit bureaus.
Credit scores are calculated based on payment history, amounts owed, length of credit history, new credit, and credit mix. Income does not appear in any of these categories and is not reported by employers or banks to Equifax, Experian, or TransUnion. A high earner with a history of missed payments will have a lower score than a moderate earner who has consistently paid on time. Lenders do verify income separately when evaluating a mortgage application — but that assessment happens outside of the credit scoring model.
What Lenders Actually Look At
Credit score is an important factor in mortgage approval, but it is rarely the only one. Lenders also assess your debt-to-income ratio, employment stability, down payment size, and the type of loan you're applying for. A buyer with a moderate credit score but a strong, documented income and low existing debt may be viewed more favorably than one with a higher score and inconsistent employment history.
Understanding how mortgage rates affect your buying power is equally important — even a well-qualified borrower can stretch their budget in the wrong direction if they don't account for rate changes. The path to approval is multidimensional, and focusing exclusively on credit score misses the full picture.
620
Typical minimum FICO score for conventional loans
According to Fannie Mae and Freddie Mac guidelines, most conventional loan programs set their minimum qualifying score at or around 620.
~5 points
Average score impact of a single hard inquiry
FICO research indicates that for most people, one new hard inquiry lowers a score by fewer than five points, and the effect is typically temporary.
This article is for general informational purposes only and does not constitute financial, legal, or mortgage advice. Lending criteria vary by institution and loan program. Consult a qualified mortgage professional for guidance specific to your situation.
