The UK’s top credit myths debunked

Discover the truth behind some of the biggest misconceptions about credit and top tips for building a strong credit score.

One adult male sitting indoors working with calculator and laptop

Written by Hayley Bevan and Victoria Smith

Published on May 26th, 2026

Last reviewed on May 26th, 2026

10 mins read

Understanding credit cards

Credit card myths are common in the UK, often originating from conflicting guidance shared by unverified online resources. But by separating fact from fiction, you’re in a stronger position to make more informed decisions about how you manage your credit.

With that in mind, we’ve uncovered the truth behind the UK’s most common credit misconceptions. The main culprits being:

You only have one credit score.
Checking your credit score will lower it.
A better salary and more savings equal a better credit score.
You get the best deals if you’ve never borrowed.
Repaying your credit card in full lowers your score.
Higher credit limits are inherently bad for your credit score.
There’s nothing you can do about a bad credit score.

By understanding the truth about credit cards, credit limits, and how everything works, you can alter your approach to credit management and potentially improve your credit score.

Along the way, we’ll also explain how Aqua supports a sensible approach to managing your credit card with links to educational pieces that will further your knowledge about the world of credit.

You’ll also find our responses to frequently asked questions about credit card myths, as well as how to check your eligibility for an Aqua credit card.

Credit: the myths and the facts

We’ve searched every corner of the internet to find the most popular credit myths to debunk, from Reddit to Google and other online resources. Here’s our definitive list.

Myth 1: You only have one credit score

Nobody has a single, universal credit score. It varies between each credit reference agency due to the different metrics used to calculate your score. So if you have a ‘fair’ score with one agency, it doesn’t mean your score won’t be better or worse with another.

For that reason, get a clearer picture by checking your credit score with two or more agencies. That way, you’ll have a better idea of your credit health and how it affects your chances of getting approved for future financial products.

Myth 2: Checking your credit score will lower it

The myth that checking your credit score will lower it is probably the most common, largely due to the confusion surrounding the difference between soft and hard credit searches.

A soft search gives you a topline view of your credit report. It’s a check you can perform yourself as many times as you wish without impacting your credit health. In fact, it’s a good idea to regularly check in on your score.

Hard searches, however, are completed by lenders when you formally apply for credit. Unlike soft searches, they can leave a mark on your file and lower your credit score – especially if too many searches are completed in a short time span.

Myth 3: A better salary and more savings equal a better credit score

Although a better salary and more savings can help with your finances, they have no bearing on your credit score. Credit reference agencies, such as Experian, do not include income or your employment status in their calculations.

However, factors that can impact your credit score include payment history, outstanding debt, credit history length, how often you apply for new credit accounts, credit utilisation, and whether you have any county court judgements (CCJs) on your record.

Myth 4: If you’ve never borrowed, you will get the best deals

Although this myth might seem to carry some truth on the surface, it’s generally incorrect.

Whenever you borrow money, either by a bank loan or credit card, you build a credit history which is assessed by potential lenders to determine your creditworthiness.

Applying for financial products without a credit history raises the risk factor with potential lenders, as there’s little evidence to suggest whether you’ll commit to making repayments on time.

If you’re considering building a credit history, you may want to explore different options such as a credit card and choose an approach that suits your circumstances and is manageable for you to start building a credit history.

Myth 5: Repaying your credit cards in full lowers your score

Repaying your credit cards in full each month doesn’t lower your score. In fact, it can go a long way to improve it.

By paying off your balance you can avoid the risk of accruing interest. It also means you’ll have a lower credit utilisation which is an important factor for agencies when calculating your score.

It’s worth noting that the same logic doesn’t usually apply to instalment loans such as student loans or a mortgage where you may be liable to pay an early repayment charge (ERC).

Myth 6: Higher credit limits are inherently bad for your credit score

Higher credit limits aren’t necessarily bad for your credit score. Provided your account is managed sensibly and your utilisation is lower than 30%, they can help to protect your score.

That said, having a high credit limit can also increase the temptation to overspend. So, if you are approved for a high limit, it can be even more important to sensibly manage your finances.

As with any type of credit limit (be it £500 or £10,000) it’s important to pay down your balance and only borrow what you can comfortably afford to repay each month.

Myth 7: There’s nothing you can do about a bad credit score

Completing our list is one of the most damaging myths towards credit management behaviour.

While some negative information can remain on your credit file for a period of time, it’s reassuring to know there are steps you can take to improve your credit profile over time. And with the right financial behaviour, there are plenty of actions you can take to get things back on track.

It’s a process that takes time. But even a few simple steps, such as registering to vote can start to pull your score in the right direction.

If you want to start your journey to building better credit, an Aqua credit card might be right for you, depending on your circumstances. As standard, you’ll benefit from personalised credit limits and support designed to help manage accounts responsibly which are available in the Aqua app.

What this means for your credit score

As you can tell from the credit myths circulating online, there’s plenty of misguidance that could have a ripple effect on how you approach credit management.

Perhaps the most prominent is the rumour that checking your score will lower it. By believing such myths, you’ll be less inclined to check your score or adjust specific financial behaviours that could be damaging your credit history.

Other myths, such as paying off your balance will lower your score, can also encourage poor financial behaviour. Not only by putting you at greater risk of paying interest, but also by carrying a higher credit utilisation which can impact your score.

If you want to feel confident in the actions taken to build your creditworthiness, it’s best to seek advice from trusted sources, such as recognised lenders, or credit reference agencies, such as Experian, TransUnion, or Equifax.

How to improve your Credit Score

There are many simple steps which could help to improve your credit score. Although things won’t improve overnight, demonstrating consistent sensible behaviour can pay off in the long run. Here’s a list to get you started.

1. Regularly check your credit report

It’s always worth checking your credit report. Even the smallest mistake, such as incorrect address details or an inaccurate late payment record, can influence your score. If you spot any errors, contact your chosen credit reference agency straightaway.

2. Consider getting a credit card

Provided repayments are made on time and you borrow within your means, using a credit card for some of your purchases is a smart way to start building a credit history and could help improve your credit score.

3. Pay your bills on time

Payment history is one of the most influential metrics when calculating your credit score. Always leave enough funds aside for monthly repayments, and consider setting up direct debits or payment reminders to help you stay on track.

4. Stay on top of existing debt

How much you owe can have a significant impact on your credit score. By staying on top of repayments and protecting a lower credit utilisation, you’re demonstrating to lenders you’re in financial control and a lower risk for lending.

5. Review your credit limit

A high credit utilisation could signal you’re too dependent on credit. Provided you’re not tempted to overspend, consider requesting a higher credit limit to lower your utilisation. However, it’s important to avoid increasing your spending as a result and continue paying down existing balances.

How Aqua supports responsible credit use

An Aqua credit card is designed to help you rebuild your credit score. As well as offering managed credit limits that could grow with you, it also comes with other useful features to help you feel more confident about credit.

As standard, you’ll also have access to Aqua Coach available in the Aqua app that offers personalised tips and advice which could help to improve your credit score. And you can also set up payment reminders to better manage your account and make your credit card payments on time to lower the risk of paying interest on an outstanding balance.

Despite what the myths suggest, checking your eligibility for an Aqua credit card has no onward impact on your credit score.

FAQs

Will my credit score be the same across all credit reference agencies?

Scores across credit reference agencies vary due to the different metrics used when making calculations. Even if you get a score of ‘fair’ with one agency, it could mean you get ‘good’ with another.

Will checking my credit report have a negative impact on my credit score?

Checking your credit score is considered a soft check and has no onward impact on your credit score. You can check your score as often as you wish, knowing it doesn’t harm your credit score.

Is there anything I can do to improve my poor credit score?

There are plenty of actions you can take to improve a poor credit score, such as paying down your debt, making repayments on time and registering to vote.

Does paying off your credit card in full reduce my credit score?

Paying off your credit card in full doesn’t reduce your credit score. In fact, it could help to improve it by lowering your credit utilisation and demonstrate to lenders you’re in financial control.

Can I reset my credit score?

You can’t reset your credit score as it’s used to show a long-term picture of your credit management behaviour. That said, there are actions you can take to slowly improve your score.

There are many myths surrounding the world of credit cards that could negatively influence your approach to credit management. By separating fact from fiction, you’re in a stronger position to protect your credit health.

Contrary to the myths, here’s a summary of the facts:

Credit scores vary between credit reference agencies.
Checking your credit score with a soft check will not lower it.
A better salary and more savings don’t affect credit scores.
Having never borrowed doesn’t mean you get the best deals.
Repaying your balance in full doesn’t lower a credit score.
Higher credit limits aren’t inherently bad for a credit score.
There are actions you can take to improve a credit score.

Want to improve your credit score? Find out if you’re eligible for an Aqua credit card today to start building healthy borrowing habits which could help strengthen your credit profile.

Failure to make payments on time or to stay within your credit limit means that you will pay additional charges and may make obtaining credit in the future more expensive and difficult.

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