Common Myths about your Credit Score

Compare & Apply for Credit Cards
  • Airport Lounge
  • Shopping Benefits
  • Fuel benefits
  • Movie Discounts




Best credit cards with 0 Annual fee*


Best credit cards with 0 Annual fee*

  • Dubai
  • Abu Dhabi
  • Sharjah
  • Ras Al Khaimah
  • Ajman
  • Other
  • Cashback up to AED 2,000
  • Rewards + Welcome Offers
  • No Annual Fee
  • Travel benefits
  • Dining Discounts
  • Entertainment Benefits
Salary range
5,000 AED50,000+ AED
Credit card Banner
Most Popular Credit Card in UAE
A credit score is a part of the eligibility factor when you apply for loans and credit card in UAE. Despite it being such an important factor, not many know the facts about the credit scores. Instead of reading the factual information on the credit score bureau websites, people give in to myths. So, below we have listed 11 of the most common myths about your credit score.

Bad Credit is Forever

Most people think that once the credit Score goes bad, it will stay that way forever. That is not true. Credit score can get better with time too. As long as you pay your bills on time and clear off your debts, credit score can improve.

Checking Credit Score Impacts your Score Negatively

Checking credit score is an important part to maintain a good credit score. So, checking your credit score doesn’t affect your score negatively. All you have to do is make sure that you are using credit scoring services. Don’t use mortgage lenders to check your credit score.

Credit Score takes a Long time to Go Bad

This is one of the most common but most harmful myths about credit score. Credit scores can be hurt in a few months. If the dues are consistently not paid in full or neglected, your account is charged-off after 6 months. Accounts getting charged-off are a very serious issue. Your credit score will be ruined by multiple collections or charged-offs.

Lots of Money Equals Good Credit Score

Few people have this misconception that good credit score is for the rich, which is not true. Good credit score has no relation to the amount of money you have. If you pay off your bills on time, your credit score will be fine.

You and Lenders see the Same Credit Score

Many people think that credit score they see will also be seen by the lenders. That is incorrect. You will see the educational credit score whether you purchased it or got it for free online. Meanwhile, the lenders see different credit scores. The educational credit score you get is just to give you the credit health’s basic idea. You should not expect to naturally get a good credit score based on that report.

One Credit Score for Everyone

As there is a different type of models for credit scoring, there are different credit scores too. As for the major credit agencies, they have 3 separate credit scores for every credit scoring models.

Merging of Credit Scores

This is also a myth. People believe that after marriage, the credit scores would be merged too. The fact is that you will still have individual credit scores. If you share a joint account with your spouse, that can affect both your credit scores.

Prepaid and Debit Cards help Credit Scores

A Credit score is specifically to deal with credit i.e, loans of any form. A credit score is maintained to check the repayment form of the creditors. Prepaid and debit cards are already paid items. Hence they do not help with the credit scores.

Credit Scores are Checked by the Employers

This myth makes people with bad credit scores hesitant to apply for better positions. Employers do not have the legal rights to probe into the job applicant’s credit scores. Also, employers don’t screen candidates according to their credit scores. Many people confuse credit scores with a credit report.

Close Account to Better Credit Score

If you have a balance left, closing the account to make your credit score is a bad idea. This will only have a negative impact on your credit score. Meanwhile, closing accounts with good-standing will have a positive impact on the credit score.

Money in the Bank does not Equal to Good Credit Score

Money in the bank means good credit score is the most common misconception that people have. It is not true because credit score is determined by the payment of your bills. If you have a low amount in the bank but pay your bills on time, you will have a good credit score. However, if you are late in paying your bills, you will have a bad credit score despite having lots of money in the bank.

Final Thoughts

If people read through the fine prints of the credit score websites they would be able to bust these myths easily. But many skim through the fine prints and give in misconceptions. Credit score has no relation to prepaid, debit, bank balance, etc. Credit score deals with the repayment of your loans. It can also impact your application for credit card Dubai.

More From Credit Cards