💳 “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credit score is still the #1 factor lenders evaluate first—yet most borrowers sabotage themselves because they believe outdated or flat-out wrong information.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:
✔ Keep balances under 30%
✔ Under 10% is ideal
✔ 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