Credit Score Myths Debunked
Updated: February 26, 2024
Now is the time to start making moves to raise your credit score. While many of us know what a credit score is, not many of us know what affects it. Check out some common credit score myths debunked below.
Checking My Score Lowers It – FALSE
Checking your credit score will not lower it. You can obtain a free credit report by visiting annualcreditreport.com. You can also download apps like Credit Karma and Credit Sesame to check your score. Our Launch experts say these are great for receiving alerts about any inquiries or new accounts. These will help you stay on top of potential fraud.
Closing Credit Card Accounts Raises My Score – It Depends
You Need A Perfect Credit Score – FALSE
Income Affects My Score – FALSE
- Payment History (35%)
- Capacity (30%)
- Length of Credit History (15%)
- Types of Credit (10%)
- New Credit (10%)
Carrying A Credit Card Balance Increases My Score – FALSE
There’s Only One Credit Score – FALSE
There are 3 major credit bureaus: Equifax, Experian, & TransUnion. There are two main scoring models: FICO Scores & Vantage Scores. Launch CU uses FICO.
Paying Off Negative Accounts Increases My Score
Launch experts say the older the collection is the less effect it has on your score. Sometimes, paying it off can ding your score because it brings it back to the forefront. If it’s a large collection and the company is continuing to reach out, you should pay it off. Even after paying them off, collections can still appear on your credit report for 7-10 years.
Paying Off Student Loans Increases My Score – FALSE
Paying off installment loans doesn’t typically have a huge impact on your score.
Now that you know the myths about your credit score, you can focus on raising it. We know increasing your credit score can sound intimidating, but there are easy steps you can take to start today!
Use our credit improvement cheat sheet to boost that powerful three-digit number into something you can be proud of.
There are definitely more myths to debunk and credit score information to share which is why Launch Member Service Representatives are here to assist you repair your credit. Call us at the number below if you’re interested in help with how to raise your credit score.