When it comes to buying a home, it helps to understand how credit scores work. Believing the wrong information could hurt your credit score—along with your chances of qualifying for a mortgage and getting a good interest rate. Here are 10 credit score myths and the truth behind each of them. 

Myth 1: Pulling your own credit hurts your credit score.

Truth: Your credit score may drop when lenders pull your credit.

How to use this: Monitoring your credit over time—known as a "soft pull"—allows you to track your progress and identify fraudulent activity. When lenders pull your credit history as part of a credit application, it's known as a hard pull. The difference between hard and soft pulls is that soft pulls won't impact your credit, while hard pulls may temporarily lower your credit scores by five to 10 points. 

Myth 2: Debit cards can help improve your credit scores. 

Truth: Debit cards have zero impact on your credit scores. 

How to use this: Using your debit card is the same as paying for everything with cash—which means it doesn't help you build credit. If you are considering buying a house, you need a credit history. Consider using a credit card to build credit, but always pay your bill on time and keep your balance around 30% of your credit limit or less.

Myth 3: Applying for new credit cards won't impact your score.

Truth: This results in a hard pull and may impact your credit. 

How to use this: Don't apply for any new credit accounts, including credit cards and loans, until after closing on the mortgage. New credit accounts may ding your credit score, and new debt increases your debt-to-income ratio—potentially hurting your chances of mortgage approval.  

Myth 4: Closing credit cards boosts your credit score. 

Truth: This typically hurts your credit score because your available credit is reduced. 

How to use this: If you've already started the homebuying process, avoid closing credit cards until after you close the mortgage. Having more credit available to you, even if you are not using it, improves your credit utilization ratio. 

Myth 5: It's best to never use credit cards. 

Truth: It's good to have no debt, but never using a credit card may hurt your score.

How to use this: Lenders generally approve homebuyers with a strong credit history. If you have no record of paying off debt over time, it could prevent a mortgage approval. Try using credit cards for small purchases and paying off the balance each month. This can help you build a credit history and increase your credit score. 

Myth 6: Negotiating a lower credit card interest rate impacts your credit score. 

Truth: Negotiating a lower interest rate is a win-win. 

How to use this: If you tend to carry balances on your credit cards, you can save money by contacting your credit card issuers and asking them to lower your interest rates. This will help you save money and pay off debt more quickly. Once you pay off a credit card balance, start setting aside money for a down payment on the house. 

Myth 7: Carrying a credit card balance improves your credit score.

Truth: Carrying a balance does not improve your score.  

How to use this: Credit-scoring companies check your debt balances when calculating your score. Having any balance can decrease your score, so if you can pay off an existing credit card bill, do it. This can help improve your chances of being approved for a mortgage.

Myth 8: Once you pay off delinquent balances, your credit scores are no longer impacted. 

Truth: Delinquencies remain on your credit history for up to seven years. 

How to use this: A 90-day late payment can knock as many as 133 points off your credit score, but the impact diminishes over time. Your credit score will start rebounding after you pay down delinquent debt, which can help you get approved for a mortgage. 

Myth 9: You can pay someone to repair your credit. 

Truth: Companies advertise these services, but they can't erase past mistakes.

How to use this: Credit repair companies can help improve your score by getting rid of errors and spotting fraudulent activity. If you filed bankruptcy or made late credit card payments, the company cannot remove these negative marks from your credit history. Save the money you would pay a credit repair company for closing costs on your home purchase instead. 

Myth 10: You can't qualify for a mortgage with a low credit score.

The truth: You may qualify for some mortgages even with a low credit score. 

How to use this: Look for mortgage programs with flexible eligibility requirements, such as a loan backed by the Federal Housing Administration. Borrowers may qualify for an FHA loan with a credit score as low as 500 if the down payment is at least 10%. 

Understanding how credit works can help you prepare for the homebuying process. But even if your score needs work, it's still possible to get a mortgage.