There are few things that are as important and misunderstood as credit. The worst is that most people think they know everything there is to know about it and have misconceptions that could affect it negatively. In other cases, they might not know that they could do some simple things to turn their credit situation around. In this article, we’re going to expose some of the most common myths and misconceptions about credit and the truth behind each one of them.

Your Credit Score is Everything

Some people think that their credit score is the be-all and end-all when it comes to contracting a loan. But it’s more complex than that. In reality, your relationship with the lender could have a much bigger impact than your credit score. 

If you’ve been with your bank for a long number of years, contracted multiple loans over the course of the years, and have always repaid them on time, you will have gained some personal credit with them. They might be more willing to give you a loan or credit card, even if your credit score isn’t the best. 

Others will either only use your credit score as one or of the factors or ignore it completely. Lenders like LoanPig, for instance, will put more importance on employment history and income when approving loans. So, these might be a better option if you need a medium-term installment loan but don’t have a history with a bank and poor credit.

Credit Repair is a Scam

For some reason, some people assume that there is nothing you can do to fix your credit fast, but that couldn’t be further from the truth. For instance, did you know that signing up as a second user on another person’s credit account will count towards your credit as well? This means that simply being a second user could boost your credit. However, it could also sink it if the primary user is being irresponsible. 

Getting a secured credit card is another option. Secured credit cards are like a credit card, with the exception that they’re backed by collateral. Usually, this will be a sum of money. The credit limit will usually be the same as the deposit. However, all the history on the card will be reported to the credit agencies and could improve your credit it if you use it responsibly. The issuer might even raise your limit after a while if they realize you’re a good payer.

You Can Get Blacklisted

This is one of the strangest myths about credit, and one that can be very persuasive. But know that there is no list of banned people and that your credit score doesn’t account for things like where you live, ethnic origin, sex, race, gender or religion. All they care about is how much debt you have and your repayment history. That’s it.


Now that you know a little bit more about how credit works, you can work towards improving it. You can also understand what lenders are looking for and start looking for financing options that fit your credit situation.