Busting 5 Common Credit Misconceptions [Video]

Maintaining solid credit can open doors to financial goals, but misunderstanding how credit works can make your efforts futile.

As part of the 2024 State of Consumer Credit study, a NerdWallet survey conducted online by The Harris Poll asked more than 2,000 adults a series of questions focusing on common misconceptions about credit.

Two thirds (67%) of Americans believed at least one of the five credit misconceptions we asked about. Here, we’re busting them.

1. Leaving a small balance on your credit card is not better for your credit scores than paying it off completely

Roughly a third (32%) of Americans wrongly believe that leaving a small balance on their credit card is better for their credit scores than paying it off completely each month, including about half (49%) of those who carry a balance on at least one card from month to month. But it’s not true.

The best way to build your credit scoresis by paying off your card balances on time and in …