💳 “Top Credit Score Myths Destroying Your Mortgage Approval 🚫”
💳 “Top Credit Score Myths Destroying Your Mortgage Approval 🚫”
⚠️ “Stop Believing These Credit Score Lies — They’re Costing You Thousands 💸”
💳 Credit Score Myths That Are Killing Your Loan Approval — and How to Fix Them
When it comes to qualifying for a mortgage in 2026, your credit score is still the #1 factor lenders evaluate first—yet most borrowers sabotage themselves because they believe outdated or flat-out wrong information.
As a mortgage broker at Medallion Funds, I see this every single day. Great people… good income… solid savings — but denied or given higher rates because they were following bad credit advice.
Today, we’re breaking down the biggest credit score myths holding borrowers back — and how to fix them fast so you can qualify for the best rates and mortgage programs.
✅ Myth #1: “Checking my credit will make my score drop.”
Reality: A soft pull does nothing to your credit score.
Soft pulls = checking your own score, monitoring apps, getting pre-qualified.
Hard pulls only occur when applying for credit, and even then:
• Mortgage inquiries within a 45-day window count as one inquiry
• The impact is usually 3–5 points — not 50
Fix:
Get pre-approved early so you know where you stand.
✅ Myth #2: “I need to carry a balance to build credit.”
Reality: Carrying a balance costs interest — and does not help your score.
The key is credit utilization, and the rule is simple:
âś” Keep balances under 30%
âś” Under 10% is ideal
âś” Zero balance is perfectly fine
Fix:
Pay cards down before the statement date, not the due date.
✅ Myth #3: “Closing old accounts will improve my score.”
Reality: Closing old accounts often lowers your score.
Why?
You lose:
• Your longest history
• Available credit limits
• Utilization ratio
Fix:
Keep older accounts open — even if you never use them.
✅ Myth #4: “All credit scores are the same.”
Reality: There are over 30 different versions of your score.
Lenders use mortgage-specific FICO models, not the scores shown on apps like:
• Credit Karma
• Experian Boost
• Bank apps
Fix:
Ask your mortgage broker for a tri-merge mortgage credit report — the only score that matters for home loans.
✅ Myth #5: “My income matters more than my credit score.”
Reality: You can make great money and still get denied.
Credit is the gateway to:
• Better rates
• Lower fees
• Low-down-payment programs
• NO-PMI mortgage options
Fix:
Work on your credit early — ideally 3–6 months before applying.
👉 The Bottom Line
Most borrowers don’t fail because of income…
They fail because of misinformation.
If you want a tailored credit and loan strategy — especially for doctors, self-employed buyers, first-time homebuyers, or investors — reach out to me at Medallion Funds.
Smart prep wins loans.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
