There are many myths about credit scoring. Your financial health is at risk, so you must be sceptical and cautious.

You could end up with poor credit if you believe the wrong myths regarding credit cards. These myths could be harming your credit score.

The Myth: When you pay off your debt, negative items disappear.

While it’s great to pay off credit card debts, late payments and negative credit can’t be erased just because the account has been repaid.

Slow payments on credit cards can negatively impact your credit score. The best way to compensate is to reestablish good credit with the account. To offset negative credit, your credit score will give you points for positive activity and take points away for negative.

Myth: It is best to pay your balance completely as soon as possible.

To build credit, you don’t have to keep your credit card debts below $0. FICO (r) has found that people with high credit scores have multiple credit cards with low balances.

However, one does not need to have a balance between building credit. Paying off all balances and avoiding finance charges is the best way save money and get a great score.

Myth: Credit cards are not the best way to build credit.

Credit is essential to building a credit score. Although it is possible to do this without credit cards, they are the best way to show that you are a credit risk. You can use them anywhere and make payments. Avoid credit cards; your credit score will drop if you do not use them.

It is better to use credit cards regularly, with low balances and no expensive finance charges. Also, make sure you pay your bills on time each month. Regular credit card use will demonstrate your ability to manage your credit responsibly. This, along with paying off your debts quickly, will increase your score.

Myth: Credit at the checkout register is more secure than debit.

Your credit score will not be affected if you use debit transactions at the register. Positive credit reporting activity will improve your credit score if you use credit responsibly.

Many people ignore the opportunity to build credit because they believe debit is safer than credit.

In the past, debit cards may have been more secure than credit the sale. Today, credit cards can be used with chip-and-pin technology. This should make it less difficult to choose between debit and credit.

Myth: Low credit scores don’t mean you won’t be able to get credit.

You may be unable to access credit if you have a poor credit rating. However, you can apply for a secured card at your local bank or credit union.

Secured credit cards are those you deposit money into accounts against which the card draws funds. This is typically your credit limit. You should ensure that your secured card reports to credit bureaus so that you can make sure you have a credit history. After about one year of using the secured credit card, your initial deposit will be returned to you, and you will be able “graduate” to an “unsecured card.