Myths about Credit History Debunked

You are here: Home » MoneyTalk » How Do Credit Scores Work? » Myths about Credit History Debunked

Failing to understand what actions affect an individual’s credit score can end up costing them a lot of money. Credit score is what lenders use to determine whether to lend someone money and what kind of interest rate they can give – and when someone is stuck with a higher interest rate, a loan will cost even more.

Although LoanMart tries to work with everyone who needs help from a non-traditional lender, we may not be able to offer loans to people with no credit or extremely bad credit. We want our customers to understand how they can make positive changes to their credit score, and that starts with understanding what is true and what’s false about our customer’s credit history, credit activity, and how it can affect their credit score.

Before individuals start looking for an online car title loan, make sure they understand the truth about these myths surrounding credit. We want our customers to keep their good credit score in tact!

Myth 1: Having Different Types of Credit History is a Good Thing

Not necessarily.

Having a diverse credit history that shows individuals are capable of managing different types of credit is a good thing for their credit score. But if they co-sign loans with another individual in order to diversify the kind of credit they hold, this could negatively impact their score if the other person fails to make loan payments on time.

Even if an individual co-signs on student loans or car loans for someone else, if they fail to make payments or they make a late payment, credit score will go down for the borrower.

Myth 2: All Credit Inquires Are Bad

Credit agencies recognize that when multiple inquires show up all at once from something like a mortgage lender, a borrower is likely being a smart consumer and searching for the best rate. Borrowers won’t be penalized if the inquiries are grouped together and made within a few days of each other.

Myth 3: Age (and Other Personal Information) Matters

Age and other demographic facts about an individual won’t matter at all when it comes to determining their credit score. Here’s what does factor into a person’s credit score: credit history, late or missed payments, having high balances, and the age of the credit history.

Myth 4: People Can’t Improve Their Score

People can always take action to get a better score! Don’t close the oldest account, since the age of the credit history is a factor. Make sure to pay off all credit card balances every month, make payments on time and in full, and don’t use too much of available credit (don’t carry big balances even if you have a high limit).

Trusted lender of over 250,000 customers2

Trusted by over 250,000 customers since 2002, we know how to do business the right way. Our US based customer service team is there for you seven days a week.

LoanMart © 2020 All Rights Reserved. Version: NMLS ID 1442517
Go To topApple Store Logogoogle play logo button


Applications submitted on this website may be originated by one of several lenders. All loans will be serviced by LoanMart. See State Disclosures for additional information.

1Loan approval is subject to meeting the lenders credit criteria, which may include providing acceptable property as collateral. Actual loan amount, term, and Annual Percentage Rate of the loan that a consumer qualifies for may vary by consumer. Loan proceeds are intended primarily for personal, family and household purposes. Minimum loan amounts vary by state. Consumers need to demonstrate ability to repay the loan.

2Based on consumers who received a loan from LoanMart from February 2002 to October 2018.

3Application processes could take five (5) minutes to complete. Upon completion, a conditional approval may be given pending review of documentation. Funding time is based on the time from final approval following receipt and review of all required documents and signing, prior to 2PM PST on a business day.

4To exercise the right to rescind, the consumer(s) must notify the lender in writing by midnight on the third calendar day from obtaining the loan. Within one business day from notice of rescission, the consumer(s) must return any monies received and fees paid on behalf of the consumer(s) by certified funds.

5Lenders recommend and encourage consumers to pay early and often and more in order to avoid additional finance charges.

If you are using a screen reader and are having problems using this website, please call 1-855-422-7412 for assistance.


Loans for certain California residents, and residents of Delaware, District of Columbia, Florida, Illinois, Indiana, Kansas, Kentucky, Michigan, Mississippi, Oklahoma, Ohio, Oregon, South Dakota, Tennessee, Texas, and Washington residents are made by Capital Community Bank, a Utah chartered bank located in Provo, UT, Member FDIC. Loans made by Capital Community Bank will be governed by Utah law and serviced by LoanMart.

†All loan applications are subject to meeting Capital Community Bank’s credit criteria, which include providing acceptable property as collateral. Consumers need to demonstrate ability to repay the loan.

To learn about vehicle secured loans made by Capital Community Bank or to submit an application, please click here or visit