When people hear “bad credit“, they get scared. It has an overwhelmingly bad connotation and there’s a lot of fear mongering around it – “you’ll never be able to get a loan!”, “you can’t build it back up!”, “you’re a bad person!”. But as you will be able to see, a lot of the opinions and things that people think are facts, are simply misconceptions, and we’re going to debunk them.

Here are just 5 of the most common misconceptions about bad credit and why they are just myths.

1. You Can’t Borrow Money

The most common misconception is probably that you can’t get loans with bad credit. That is entirely false. While yes, most places will definitely require a credit check, that doesn’t mean your possibilities are null. There are options you can pursue even with a poor credit score, as there are lenders who cater specifically to individuals with bad credit.

First of all, you’ve got bad credit loans, which are loans that are offered to people with bad credit. The catch is that there will be limitations, such as a lower amount that you are allowed to obtain, a shorter repayment term, and a higher interest rate. You can check your score and receive your free credit report from credit reference agencies such as EquifaxExperian and TransUnion to see where you stand and what kind of loan you can get and how you much effort is required for you to improve your credit history and state of overall personal finance.

Similarly, to the bad credit loans, loans with no credit check come with a high interest rate and a smaller amount of money, as well as a shorter repayment period. However, like the name suggests, there is no credit check required for the loan and lenders won’t take a look at your credit report to approve you for a loan. Instead lenders will look at other aspects of your affordability to see whether or not you are eligible.

If you just need a bit of help making ends meet or the security of knowing that you have the means to pay for any emergencies that may arise, then a bad credit credit card could be your answer. Unlike normal credit cards with cards for bad credit, you don’t have to have perfect credit to be accepted and they are also the perfect opportunity for you to rebuild their credit and improve your credit score.

However, you may be charged a higher interest rates than you would with a normal credit card due to account for your bad credit.

2. Your Credit Can’t Recover

A lot of people are under the impression that once you’ve fallen prey to bad credit, you can never recover from it. It’s the end of the world! That is completely false. Bad credit is not a life sentence. It is, indeed, possible to improve your credit, build it up, and come to have an excellent credit score that will enable you to acquire a loan, rent apartments, get a credit card, etc. and will open up financial transactions that were previously denied to you.

3. Credit Is Difficult to Build Up

Or maybe you don’t think that it’s impossible to recover, but you believe that it is incredibly difficult to improve your credit score and that the measures are not accessible to everyone. That’s a misconception, as well. Here are a few fool proof methods to build up your credit:

4. Bad Credit Will Impact You Even After You’ve Improved It

It’s a misconception that once you’ve had bad credit, you are marred for life. Your poor score doesn’t have to affect you for the rest of your life. Just work on improving it and always be aware of how you are affecting and impacting your credit. Once you’ve gotten on track with good credit, all you have to do is maintain it, so there is nothing to worry about; your bad credit will not haunt you forever, so you can apply for loans with no issues.

5. You Should Apply for As Many Loans as Possible

When you’ve got bad credit and you’re getting rejected for loans, surely what you should do is apply to every loan you can find, in order to maximise the chances of getting approved, right? Wrong! That is the worst thing you can do, because every single rejection will count against your credit score. Instead, you should look into the type of loans the company offers and whether they work with individuals with bad credit. It’s a good idea to also do some “soft searches” that allow you to see whether or not you’d get approved without having to apply.

In conclusion, although there are a lot of misconceptions surrounding bad credit, and a lot of fear mongering happening, poor credit isn’t forever, and it’s not as limiting as it seems. It just requires you to use some specific options catered to you, an acceptance that you might have to pay slightly higher interest rates and work a little to improve your credit score and get your personal finances in order.

And if you’re fed up of having poor credit then why not start taking active steps to improve and rebuild credit today!