If you’ve got a less-than-perfect credit history, it’s easy to believe that your options are limited. The reality, though, is that many of the fears people have about bad credit are based on misconceptions. Understanding these myths can help you make smarter decisions and put you back in control of your finances.
You can’t get any credit or a mortgage with bad credit
One of the biggest myths is that you’ll never be able to get credit again if you have a chequered financial past. While it’s true that some lenders are more cautious with people who have poor credit scores, that doesn’t mean all doors are closed. In fact, there are still plenty of ways to access credit even with a less-than-perfect score.
For example, you might consider applying for a credit card for bad credit. These cards are designed specifically for people who need to rebuild their record. By using the card responsibly, like making small purchases and paying them off in full each month, you can gradually improve your credit score.
Similarly, some lenders specialise in offering mortgages to people with bad credit, although they might charge a higher interest rate. It’s worth shopping around and seeking out options that fit your circumstances.
A bad credit score is permanent
It certainly isn’t something that will haunt you forever – especially if you make changes to improve your situation. Some people mistakenly believe that once their score drops, it stays low indefinitely. But it’s not the case.
Credit scores are dynamic and can change as your financial behaviour improves. Negative marks on your credit report, such as missed payments or defaults, typically stay on your record for six years in the UK. But after this time, they’re removed and no longer affect your score.
If you start paying bills on time, reduce debt and manage credit more effectively, your score will improve over time. It might take a little while, but consistency pays off.
Checking your own credit score will lower it
Some people worry that checking their own credit score or report will negatively impact it. This is simply not the case. When you check your credit report, it’s known as a ‘soft check’, which doesn’t affect your rating in any way. Only when a lender checks your score as part of an application, which is a ‘hard check’, will it have a small impact.
In fact, checking your credit score regularly is a smart habit. It allows you to spot errors and track your progress as you work towards improving your score. So don’t shy away from checking things.
Your partner’s or housemate’s bad credit will affect you
You might worry that someone else’s bad credit could hurt your file. In most cases, this isn’t true. Your credit score is personal, and it’s not directly linked to someone else’s – unless you hold a joint financial account, like a mortgage or bank account together.
If your partner or housemate has poor credit and you don’t, it might affect the terms of the loan, but it won’t automatically prevent you from getting credit on your own.