GOBankingRates

Over Half of Gen Z Believe This Myth About Their Credit Score

cnythzl / Getty Images/iStockphoto

A good credit score is key to everything from renting an apartment to securing a loan, but there appear to be some misconceptions floating out there about what it takes to actually get one. 

According to a new Capital One survey, 53% of Gen Z believe that carrying a credit card balance each month increases their credit score. This is not true.

The Future of Finances: Gen Z & How They Relate to Money
Related: Get Your Credit Score On Track With These 3 Tips for Success
$2,000 Quarter? Check Your Pockets Before You Use This 2004 Coin

“Carrying a balance on your credit cards each month not only does not increase your credit score, but in fact actually harms your credit score,” said Rachel Ehrlich, COO of Klutch. “One of the calculations of credit score is your availability, which is essentially how much you have spent versus how big your credit card limit is. The higher the availability, the better for your credit score. By keeping your balance as low as possible you are increasing your availability (the amount by which you have available to spend) and therefore benefiting your credit score.”   

Andrew Lokenauth, founder of Fluent in Finance, shared additional steps to take to actually improve your credit score.  

Check Your Credit Today

Ian Wright, managing director at businessfinancing.co.uk, lent a couple more tips. 

More From GOBankingRates