Here at Credit Savvy, we hear a lot of interesting myths, many that are simply not true.  We’ve come up with a list of the top 6 credit myths that we hear all the time. Read through them and make sure you know the facts!

  1. Checking my credit score will decrease it

No. When you check your own credit score through a credit reporting body, you are accessing it through what is called a ‘soft enquiry’ and this has no impact on your score. It’s a good idea to see where you stand and track it over time, so you can see if anything has impacted it, as well as be notified as soon as possible if someone has used your identity.

  1. You only have one credit score

This is a big fat myth. In reality, you can have many credit scores. Each credit reporting body that has a credit file about you can provide you with a credit score. Even your credit provider can calculate your score based on the information they have about you. Your score is determined by the information in your file and the scoring model used, so don’t be alarmed if all your credit scores are slightly different, this is normal.

  1. Credit repair companies can remove any default from my credit file

This isn’t always true. Defaults can only be removed from your credit file if the listing is incorrect or out of date (more than five years old). Individuals can do this themselves and without cost by contacting the relevant credit provider. Even if you pay a default, the listing will still remain on file, but it will just be updated as paid.

  1. I don’t need to check my credit score because I always pay my bills on time and haven’t applied for credit in a while

It is still wise to check your credit score and credit file information. This can help to prevent you from becoming the victim of identity theft and ensure that your file is accurate and up to date. You can do this via a credit score monitoring service like Credit Savvy, bonus – it’s quick, easy and free!

  1. I don’t have to worry about paying my telco or utility bills on time because they are not recorded as part of my repayment history

Be careful here. Whilst late payments for telco and utility bills are not recorded as part of your repayment history, they may be recorded as a default on your credit file if they are $150 or more and over 60 days overdue and this can seriously hurt your credit score.

  1. The more credit I have applied for the better my credit score

STOP! Right now.

This is simply not true. Too many applications in a short time frame with different lenders could indicate you are over extending yourself financially or that you are in financial distress and can negatively impact your score. Remember, only apply for credit if and when you really need it.

Have you heard of any other credit myths? Share them with us in the comments below.



  1. How come you don’t give much detail for an OK score. I thought I would have score over have not indicated what items, eg loans cards etc that I have and what each one of them are reducing my rating by in terms of points. Eg you should list what you know I have and how many more points I would have if I got rid of that item(credit card) for example.

    • Melissa Ng Reply

      Hi Maurie,

      Thanks for your feedback.

      Credit Savvy provides you with access to key credit file information, including credit enquiries that are reported by credit providers to Experian, one of the three Australian Credit Reporting Bodies. If you currently hold credit products such as loans and credit cards that are not displayed on your Credit Report Card, it might be because the credit enquiry for those products was made over 5 years ago, or your credit provider may not have submitted this data to Experian.

      Your Experian credit score is calculated by an algorithm that uses information from your credit file. While we can’t tell you specifically what will happen if you would close a credit card, we do know some of the key factors that influence how your credit score is calculated. There is some further information in the following article which you may find useful: How are credit scores calculated

      You might also like to check out our blog post for 5 tips that could improve your credit score.

      I hope this helps.

      Kind regards,
      Mel from The Credit Savvy Team

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