Your credit score is like the GPA of your adult life. It quietly shapes everything—from the mortgage rate you qualify for to whether your dream apartment calls you back. So it makes sense that most of us try to follow the so-called “rules” to keep that three-digit number high.
But here’s a twist: not all the credit advice you hear is gospel. In fact, some things you’ve been warned never to do might not tank your FICO score at all. These seven “credit score taboos” are often misunderstood, and depending on your financial goals, they could be more flexible than you think.
1. Carrying a Small Balance Instead of Paying in Full
You may have heard that paying your credit card in full each month is the only way to go. But then someone told you that carrying a small balance shows lenders you’re actively using your card and that it somehow helps your score.
Here’s the truth: the best thing for your credit score is using your card and then paying the full balance before the due date. Carrying a balance doesn’t earn you bonus points. It just earns you interest charges. But if you do carry a small balance occasionally, it’s unlikely to wreck your score. Just don’t make it a habit.
2. Closing an Old Credit Card
Financial advice often says: Never close an old account. It’ll shorten your credit history and hurt your score. That’s only partly true. Yes, your length of credit history matters, but it’s only a small part of your overall score. If you have multiple other cards with long histories and low balances, closing one old card, especially one with high fees or no perks, might be a smart financial move that won’t do lasting damage. The key is to weigh the temporary ding against long-term convenience, especially if the card is costing you more than it’s worth.
3. Applying for Multiple Cards in a Short Time
You’ve probably heard this one, too: Every credit inquiry will hurt your score. Technically, this is true, but in context, it’s not nearly as scary. Applying for new credit causes a small dip in your score, usually five points or less. If you’re shopping around for the best credit card perks or doing a travel rewards strategy, a few inquiries won’t tank your score, as long as your overall credit profile is solid. In fact, expanding your credit mix can help boost your score over time, especially if you maintain low utilization.
4. Paying Off Collections or Charge-Offs
It might seem like once an account goes to collections, there’s no point in paying. It’s already damaged your score, right? Wrong. Paying off collections, especially recent ones, can still benefit your credit profile. While the account won’t disappear, some scoring models like FICO 9 and VantageScore 3.0 and higher ignore paid collections when calculating your score. So yes, you can break the taboo of “ignoring” old debts and come out better for it, especially if you negotiate the terms before paying.
5. Using More Than 30% of Your Credit Limit (Temporarily)
That golden 30% rule? It’s a guideline, not a hard line. Credit utilization (how much of your available credit you’re using) is a big part of your score. But going above 30% one month won’t cause long-term damage, especially if you pay it down quickly before the billing cycle closes. Life happens. If you need to float a big purchase or cover an emergency, it’s not the end of the world. Just don’t leave a high balance lingering month after month.
6. Opening a Retail Store Card for the Discount
Store cards often get a bad rap. They come with high interest rates and can tempt you into unnecessary spending. But opening one now and then doesn’t mean your credit is doomed. In fact, adding a retail card can increase your total available credit and improve your utilization ratio, one of the key factors in your score. The caveat? Only open it if you truly need the item, can pay it off immediately, and won’t be tempted to overspend in the future.
7. Letting a Credit Card Go Dormant
Some people worry that if they don’t use a credit card regularly, the issuer will close it, and that will hurt their score. And while yes, unused cards can be closed eventually, letting a card sit unused for a few months won’t immediately impact your credit.
If you want to keep the account open, use the card for a small subscription or a recurring expense, then set auto-pay so you don’t forget. But if you forget for a bit? You’re not doomed. Credit card companies often give plenty of warning before closing inactive accounts.
The Rules Aren’t As Strict As You Think
Credit score rules aren’t as rigid as they seem. While it’s true that maintaining good credit requires smart habits—on-time payments, low utilization, and responsible borrowing—there’s room for flexibility, depending on your personal situation. You don’t need to live in fear of every small decision. Understanding the nuances of how credit scores work can free you from unnecessary stress and help you build financial confidence instead of credit paranoia.
So before you obsess over every piece of advice, ask yourself: Is this a long-term habit or a short-term blip? Because most of the time, your credit score can recover from a lot more than people think.
Have you ever “broken” a credit rule and survived or even benefited from it? What credit taboos have you challenged that turned out to be no big deal?
Read More:
7 Ways to Avoid Paying High Interest Rates on Your Credit Cards
8 Financial Red Flags That Show Your Credit Score Is About to Crash
Riley is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture, she’s written about everything under the sun. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.
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