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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 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.

Credit score meter
Cutting a credit card with scissors

Closing Credit Card Accounts Raises My Score – It Depends

Yes and No. It depends on how long you’ve had the card and what the balance is. It’s best to call your financial institution and talk with a member service representative about your options. Normally, you shouldn’t close credit cards as it may decrease your capacity. Capacity is how you utilize your credit card. If you pay an annual fee with your credit card and are looking to get away from that, then check out one of Launch’s two great Visa credit cards with no annual fee.

You Need A Perfect Credit Score – FALSE

Even though it’s cool to say you’re in the 850 club, there are no special loans or products for 850 and higher score holders. However, a higher score usually gives you a lower interest on loans you may apply for. So do your best to keep your score as high as possible. Check out our credit score cheat sheet to see what’s classified in each score range.
751 credit score shown on laptop
Stacks of money

Income Affects My Score – FALSE

Income isn’t considered an element that affects your potential credit risk. Income is a factor of capacity to pay bills.
Here is what affects your score:
  • 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

Carrying a balance on your credit cards can hurt it, especially if you’re approaching your limit. This makes up your credit utilization ratio and it compares the amount of credit you’re using compared to your overall available credit. This makes up 30% of your score so using almost all of your credit card balance will send your ratio high and result in your credit score dropping.
However, it is a good idea to use your credit card to build and establish a good credit history. Experts say to keep your credit score ratio 30% and under. Read more on credit card utilization here.
If you’re currently using a high-interest-rate credit card, consider transferring the balance to one of Launch’s two great credit cards.
credit card statement with credit cards, a calculator, and glasses on top of it
Person holding up cellphone with credit score meter

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.

Person on laptop holding documents
student loans

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.

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