What is a common misconception about credit scores?

A common misconception about credit scores is that closing old accounts will improve the score. In reality, closing old accounts can have a negative effect on your credit score. This is largely because credit scores take into account the length of your credit history, and closing an old account can shorten that history. Additionally, it can affect your credit utilization ratio, which is the amount of credit you are using compared to the total credit available to you. Keeping older accounts open can demonstrate a longer and more stable credit history, which can positively influence your score.

Understanding this misconception is crucial for individuals trying to improve their credit scores, as many may believe that they are taking positive steps by closing accounts they no longer use, whereas they might inadvertently harm their creditworthiness.