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The Express Lane Blog

The Express Lane Blog

Asset Publisher

5 Common Credit Myths Debunked

credit report on desk

Since credit plays a crucial role in your financial decision to purchase a car, some people may be a bit intimidated by the topic — especially those who have bad credit or no credit. However, there are many misconceptions about credit that may influence how people perceive it.

To help you decipher fact from fiction, we’ve summarized 5 of Experian's common credit myths:

  1. All debt is the same: FALSE.
    While you may think “debt is debt,” maxing out your credit card is not viewed the same way as auto financing or a mortgage on a home.

  2. Checking your credit report lowers your credit score: FALSE.
    According to Experian, a credit inquiry may affect your credit score if the inquiry is related to a credit application that you’ve submitted. However, simply viewing your credit report on your own won’t affect your score.

  3. There is only one credit score: FALSE.
    There are multiple credit scoring models that finance companies and credit lenders use in different situations. The three most popular credit bureaus are Equifax, Experian and TransUnion.

  4. Joint credit reports exist: FALSE.
    Married couples may have many joint accounts, but your credit report isn’t one of them. Regardless of whether you’re married or single, you have your own personal credit report that is linked to your Social Security number.

  5. People with bad credit or no credit need a cosigner to purchase a vehicle: FALSE.
    Subprime financing is an option specifically available to credit-challenged consumers regardless of their credit history. Subprime borrowers don’t always need a co-signer. For example, a car dealer on the Credit Acceptance program will not require a co-signer (in most cases). Click here to be connected to a dealer on the Credit Acceptance program.


Now that we’ve debunked these credit myths, it’s time to get started on your credit approval. If you’re a potential car buyer with bad credit or no credit who’s looking to get approved for financing, a dealer enrolled in the Credit Acceptance auto finance program can help you get started.