February 9th, 2026

Credit Score Myths to Stop Believing in 2026 — Plus, MTC Federal’s Tools & Resource to Stay Ahead

Credit scores matter — and in 2026, the rules around scoring models are evolving. But the core habits that build strong credit haven’t changed. Here’s a streamlined, myth‑busting guide grounded in insights from our Credit Savvy tool and our partners at GreenPath Financial Wellness.

Myth #1: Checking Your Credit Score Hurts Your Credit

Fact: Checking your own score is a soft inquiry, which does not affect your credit. Experian confirms it’s completely safe.

Credit Savvy makes this easy: Log in anytime to view your score and report daily, without lowering your score.

Myth #2: Carrying a Credit Card Balance Helps Your Score

Fact: Carrying a balance does not improve your score. CNBC and myFICO report it only increases interest costs and can raise utilization — a negative scoring factor.

Tip from Credit Savvy:
Keep credit usage under 30%, ideally closer to 10%.

Myth #3: Closing Old Accounts Helps Your Score

Fact: Closing old cards can lower your score by shortening credit history and raising utilization. TransUnion confirms both can negatively impact credit.

Tip: Keep older cards open when possible — credit age matters.

Myth #4: Income Affects Your Credit Score Directly

Fact: Income is not part of your credit report and does not influence your score. CNBC confirms this.

Myth #5: You Only Have One Credit Score

Fact: You have multiple scores across different models. Chase explains that FICO and VantageScore weigh factors differently, so numbers vary.

Credit Savvy uses:
VantageScore® 3.0, which weighs:

• 40% Payment history
• 23% Credit usage
• 21% Credit age
• 11% Account mix
• 5% Inquiries

Myth #6: Bad Credit Can’t Be Rebuilt

Fact: Credit can absolutely be rebuilt. Both our team of lending professionals and the experts at Experian note that many individuals see improvement within months to a year with consistent habits.

What’s Changing in 2026 (GreenPath Highlights)

• New scoring models (VantageScore 4.0 & FICO 10) evaluate a broader range of financial behavior, including rent/utility data and long‑term patterns.
• BNPL reporting becomes standard — on‑time payments help; missed payments hurt.
• Medical debt reforms: Paid medical collections and debts under $500 are disappearing from reports.
• Consumer protections: Faster dispute timelines and stronger documentation standards are being introduced.

Bottom line: The fundamentals still matter most — on‑time payments, low balances, older accounts, and steady habits.

How MTC Federal’s Credit Savvy Helps You Stay in Control

• Daily access to your credit score and report
• Real‑time alerts for changes
• Personalized score‑improvement tips
• Clear insight into your VantageScore® 3.0 factors

Pair Credit Savvy with MTC Federal’s lending team or GreenPath’s financial counseling for total support in navigating 2026’s evolving credit landscape.

Take Charge of Your Credit This Year

Credit scoring is evolving — but smart habits and the right tools make all the difference.

👉 Log in to Digital Banking and activate the Credit Savvy feature today
👉 Connect with an MTC Federal lending expert for personalized support

Sources

1. Experian – Credit Myths Debunked (Soft inquiries do not affect credit) [experian.com]
2. CNBC – Credit Score Myths Debunked (Carrying a balance does not help credit) [cnbc.com]
3. myFICO – Carrying a Balance Myth (Utilization impact) [myfico.com]
4. TransUnion – How Closing Accounts Affects Credit Scores [transunion.com]
5. CNBC – Salary and Income Impact on Credit Scores (Income not included in scoring [cnbc.com]
6. Chase – VantageScore vs. FICO Overview (Multiple credit scores exist) [chase.com]
7. Experian – How Long Credit Repair Takes (Credit can be rebuilt with consistent habits) [experian.com]
8. GreenPath Financial (an MTC Federal partner)- Review Your Credit Report articles