My Mortgage Score Blog

Debunking Common Myths About Mortgage Scores

There’s a lot of misinformation about credit scores, especially when it comes to mortgage approvals. Believing these myths could lead to unnecessary stress—or even financial mistakes—when preparing to buy a home. Let’s break down some of the most common misconceptions.

Myth #1: Checking Your Own Credit Score Will Lower It

Many people avoid checking their credit score because they fear it will hurt their score. However, this isn’t true. Checking your own score is a soft inquiry and has no impact on your credit. In fact, monitoring your mortgage score regularly is a smart habit—it helps you spot errors, track changes, and ensure you're in the best position before applying for a loan.

Myth #2: You Only Have One Credit Score

Your credit score can vary depending on where you check it. Different lenders use different scoring models, and mortgage lenders primarily rely on FICO mortgage scores. If you're checking your score on a free credit app, you might be seeing a VantageScore, which can be very different from the score used for a mortgage.

Myth #3: Closing Old Accounts Will Improve Your Score

It might seem logical to close old credit accounts you’re not using, but this can actually hurt your mortgage score. Keeping old accounts open helps maintain your credit history length and available credit, both of which play a role in your score. Instead of closing accounts, consider keeping them open with occasional small transactions to maintain positive credit history.

Myth #4: A Higher Income Means a Higher Credit Score

Your credit score isn’t based on how much money you make—it’s based on how you manage debt. Lenders don’t factor in your income when calculating your credit score. Instead, they look at your payment history, credit utilization, account diversity, and the length of your credit history.

Myth #5: Paying Off All Debt Before Applying for a Mortgage Guarantees a High Score

While reducing debt is helpful, completely paying off and closing all accounts right before a mortgage application can actually work against you. Having active accounts with a history of responsible payments is crucial for maintaining a strong score. Instead of closing accounts, aim to keep low balances and continue making on-time payments.

Final Thoughts

Understanding how mortgage scores really work can help you avoid costly mistakes and set yourself up for the best possible loan terms. Focus on good credit habits, monitor your score regularly, and don’t fall for common myths that could hurt your financial future.