2. Checking my own credit card report will hurt my credit score: This is a widely believed misconception. There is absolutely no harm in checking your personal credit report. Usually when you review your own credit report that process is called as a “soft pull,” or “soft inquiry,” which will be clearly seen on a personal credit report but this will have no impact on your credit scores.  Thus, it is advisable that everyone should check his or her credit report at least once annually.

When lenders or others check your credit card score, then it is called as a “hard enquiry” and this can affect your credit card scores.  Sometimes hard inquiries are shown to other lenders in order to represent new debt that might not be shown on a credit report. These hard inquiries done by the lenders can really affect your credit scores but soft enquires don’t.

3. Pay all the credit cards dues to improve credit score: Most often you come across a situation where many of the lenders advice you to pay some of your old credit card dues in order to improve your credit score and become eligible for applying for huge loans. Don't ever become a prey for such lenders. The actual fact is that when you close an older card you will actually end up losing your credit card score. There are two reasons behind this, first is that the best scores goes to people who moderately use their card over a long period of time, so the better option is to go for the older cards. Even if you are thinking of closing then try to close the newest ones first so that you can retain the cards with the longest history of prompt payment. Secondly, credit-scoring agencies put a lot of pressure on 'utilization ratio.' That is your total debt as a percentage of all your available credit. If closing cards lower your available credit, your utilization rate can hurt your credit score.

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