Credit Score Myths That Could Be Holding You Back

Don’t let bad info keep you from better rates and financial peace of mind.

When it comes to your financial health, your credit score is one of the most important numbers in your life. It can influence everything from whether you’re approved for a loan to how much interest you’ll pay. But credit scores are also surrounded by confusion and misinformation.

At CSCU, we believe that informed members make empowered decisions. Let’s bust some of the most common credit score myths—and show how we can help you build a stronger financial future.
Myth #1: Checking Your Credit Score Hurts It

The truth: You can check your own credit score as often as you’d like, and it won’t lower your score.
Hard inquiries, like when a lender checks your score for a loan application, may affect it slightly. But soft inquiries, like when you check your own score, have no impact.

✅ Tip: CSCU has partnered with SavvyMoney to provide credit monitoring and tips. You can access this in your online banking or mobile banking app!

Myth #2: You Need to Carry a Balance to Build Credit

The truth: Paying off your balance in full each month is actually better for your credit.
There’s a myth that you must carry a balance and pay interest to boost your score, but that’s false. What really matters is your credit utilization—how much of your available credit you’re using. Keeping that number low helps your score.

✅ Tip: CSCU offers options for credit cards and education on how to make it easier to pay off balances and maintain low utilization.

Myth #3: Closing Old Accounts Will Help Your Score

The truth: Closing long-standing accounts can actually hurt your score.
Length of credit history is a major factor in your credit score. Shutting down an old card might reduce your total available credit and shorten your credit history, which can both cause your score to dip.

✅ Tip: If an old card has no annual fee, consider keeping it open even if you don’t use it often.

Myth #4: Your Income Affects Your Credit Score

The truth: Credit bureaus don’t consider your income at all.
Your credit score is based on credit behavior, how you manage debt, not how much money you make. That said, income does matter when lenders assess your ability to repay.

✅ Tip: Whether you’re earning a little or a lot, CSCU offers tools to help you stay on top of your bills and build healthy credit habits.

Myth #5: One Late Payment Won’t Make a Big Difference

The truth: Just one late payment can drop your score significantly.
Payment history is the biggest factor in your credit score, making up 35% of your score. Even one missed payment can stay on your report for up to 7 years.

✅ Tip: CSCU’s bill pay and automatic transfer options can help ensure you never miss a payment again.

Myth #6: All Debt Is Bad for Your Credit Score

The truth: Not all debt is created equal.
Having a mix of credit types—like a mortgage, auto loan, and credit card—can actually help your score if managed responsibly. Credit scoring models look at your credit mix as a sign of financial maturity.

✅ Tip: CSCU can help you maintain a healthy credit mix with affordable loan options and credit counseling.

Myth #7: Paying Off a Loan Removes It From Your Credit Report

The truth: Paid-off loans stay on your report—and that’s a good thing.
A fully repaid loan in good standing can positively affect your score for up to 10 years. It shows lenders that you follow through on your financial obligations.

✅ Tip: Keep making on-time payments through CSCU loan autopay to build a strong credit history.

Myth #8: All Credit Scores Are the Same

The truth: You have many credit scores, not just one.
Different scoring models (FICO, VantageScore) and credit bureaus (Experian, Equifax, TransUnion) calculate your score in slightly different ways. It’s normal to see variation.

✅ Tip: CSCU can help you understand which score lenders are using and how to improve it.

Myth #9: You Can Fix a Bad Score Overnight

The truth: Real improvement takes time and consistency.
While small improvements can happen in a few months, meaningful changes to your credit score usually require long-term good habits. Be wary of services promising quick fixes.

✅ Tip: CSCU’s credit-builder tools are designed to help you make steady progress you can count on.

Myth #10: Debit Cards Help You Build Credit

The truth: Debit card use doesn’t affect your credit score.
Because debit card transactions pull money directly from your bank account, they’re not reported to credit bureaus. Only credit accounts (like loans or credit cards) are.

✅ Tip: A CSCU credit card with a low limit can be a smart way to build credit responsibly.

Myth #11: Small Credit Unions Don’t Report to Credit Bureaus

The truth: CSCU reports just like big banks do.
Some people assume only large national banks can help build credit. But CSCU reports member activity to the major bureaus, so your credit can grow right here at home.

✅ Tip: Open a loan or credit card with CSCU to start building credit while keeping your money local.

Myth #12: You Can’t Get Approved With Bad Credit

The truth: There are still options—and CSCU can help.
While your score affects your loan terms, it doesn’t automatically disqualify you. CSCU offers credit-builder loans and secured cards to help you rebuild.

✅ Tip: Talk to us about your situation. We’re here to work with you, not against you.

Myth #13: Employers Can See Your Credit Score

The truth: They can request a credit report, but not your score.
With your permission, employers can view a modified version of your credit report. But they won’t see the actual number, and the report won’t include account numbers or detailed balances.

✅ Tip: If you’re job hunting, CSCU can help you review your report ahead of time.

Myth #14: You Need a Credit Repair Company to Fix Your Score

The truth: You can improve your credit on your own.
Many paid services simply do things you can do for free: dispute errors, reduce debt, and make on-time payments. Credit unions like CSCU offer free resources to guide you.

✅ Tip: CSCU offers personal financial counseling to help you take control, without the fees.

Myth #15: Once You Reach a Good Score, You’re Set

The truth: Your score can go down if you stop paying attention.
Even with a great score, missed payments, new debt, or closing old accounts can trigger a drop. Credit management is an ongoing process.

✅ Tip: Use CSCU’s digital tools and alerts to stay on top of your accounts and protect your score.

How CSCU Can Help You Improve Your Credit

At CSCU, we offer more than just accounts—we offer financial guidance and tools that help our members thrive. Here’s how we support better credit:

Whether you're starting from scratch or rebuilding after a setback, we’re here to help.

Talk to a CSCU team member today about your credit goals. We’ll help you create a personalized plan that works for you—no judgment, just support.
Visit your local branch or text us at (936) 295-3980 to get started.

Mandy Bradshaw