Building good credit doesn’t have to be complicated or expensive, but widespread misinformation often convinces people otherwise.
According to Cynthia Chen, CEO and Founder of Kikoff, a credit-building platform used by over 2 million Americans, common myths about credit keep consumers from taking simple, effective steps toward financial health.
Why Credit Myths Persist
Credit remains one of the most misunderstood aspects of personal finance, largely because most schools don’t teach it.
That gap in education leaves room for misinformation to spread, and the stakes are high: credit affects everything from qualifying for a mortgage or car loan to renting an apartment.
“Credit can be a complex topic, and since it’s not something most of us learn in school, that lack of education leaves plenty of room for myths to take hold,” Chen said.
“Unfortunately, misinformation can confuse people and keep them from improving their credit. And credit is critical these days, for large goals like a car or mortgage, but also even renting an apartment often requires having a good credit score. I’m excited to be here to help demystify credit and share practical tips anyone can use to take control and make confident decisions.”
Below, Chen addresses five of the most common credit myths.
Myth 1: Checking Your Own Credit Score Hurts It
This is false.
When you check your own score through your bank or a credit app, it registers as a “soft” inquiry and has no effect on your score.
Consumers can also get a free credit report every week through AnnualCreditReport.com, the only federally authorized source for free credit reports.
A “hard” inquiry, which can affect your score, only happens when a lender checks your credit, such as during a mortgage, auto loan, or credit card application.
Lenders are required to notify you before running a hard pull.
Myth 2: You Need a Credit Card To Build Credit
Not true, according to Chen.
While credit cards are one route to building credit, they aren’t the only one.
Secured cards and student cards offer a safer entry point, but everyday bills can help too.
Some landlords, utility companies, and even cell phone carriers report on-time payments directly to credit bureaus.
Kikoff also helps its users report bill payments to build credit history.
Myth 3: Debt Is Inherently Bad and Should Be Avoided
Debt itself isn’t the problem, Chen explained.
What matters is how it’s managed.
Using a credit card or taking out a loan responsibly, buying only what you can afford, paying on time, and avoiding balances you can’t handle can actually help build a strong credit profile.
In fact, having a track record of responsible borrowing is essential.
Lenders rely on credit history to determine trustworthiness, and a lack of history can itself be a barrier. Building credit takes time, and consistent, responsible use of credit and loans can strengthen your profile and help secure better terms for future big purchases.
Myth 4: You Need a High Income for a High Credit Score
Income has no bearing on credit scores, Chen said.
Credit bureaus and lenders instead look at factors like whether you pay on time, keep balances low, open new credit lines responsibly, and maintain a healthy mix and age of accounts.
Someone with a modest income can achieve excellent credit by demonstrating these habits.
Myth 5: You Have To Spend a Lot of Money To Improve Your Credit
This is also false, and Chen cautions consumers to be wary of any company that suggests otherwise.
Improving credit doesn’t require significant spending, just the right education and tools.
Free resources include checking your credit report through the government-authorized AnnualCreditReport.com and researching credit-improvement strategies independently.
Local credit unions are another resource, often offering low-cost credit-builder loans and services.
Kikoff itself offers an affordable option: for $5 a month, users get access to credit reports, the Kikoff tradeline, and rent and bill reporting.
Getting Started
Chen encourages consumers not to let confusion around credit stand in the way of taking action.
“I know credit can feel confusing, but don’t let that stop you from making the first step. Start by checking your credit report; it won’t hurt your score, and you can do it for free at AnnualCreditReport.com. Getting informed is the best first step, and once you know where you stand, you can create a simple plan to improve, one small step at a time.”
Read More:
- How To Use a Credit Card Responsibly and Avoid Debt
- Your 5 Step Guide To Getting Debt Relief Fast
- How To Get Out of Debt: 13 Expert-Backed Steps for Success
