If you’re someone with a bad credit history, we’ve got some great news for you. While it’s critical that you work hard on improving your credit history, it doesn’t mean you should forget about loans and other financial operations. Here are 6 bad credit myths you should fall for:

1. Your credit score will decrease if you take out a new loan

Unless you can’t afford to pay down a new debt, taking out a new loan can actually improve your credit score. In the beginning, your credit score can drop if you receive a loan because of a higher reported credit balance and credit inquiries. But, if you successfully pay if off, you can actually increase your credit score.

2. Having collateral is a must when getting a new loan

Having collateral isn’t required when getting a new loan with a bad credit score. In most cases, you don’t have to put down your car or house in order to receive a loan. However, be sure to find it out before you take out a loan. If you’re going to receive a secured loan, a lender might demand collateral as a guarantee that they’ll get their money back. The unsecured loans don’t require collateral, but they can have different conditions.

3. A bad credit score is only the result of a failed loan repayment

When you fail to repay your loan, get ready to see a significant drop in your credit score. However, it’s not the only factor that negatively affects your score. Your credit inquiries, late payment history, credit balance, and credit limit can also significantly reduce your credit score.

4. Only people with a good credit history can get a loan

Although people with a good credit history have more chances of receiving a loan, bad credit personal loans are still available from multiple lenders. Usually, lenders give secured loans, but you can find unsecured as well. Do your own research and be honest with your potential lender.

5. You can have problems at work

Unless you have a growing number of debts that you can’t pay off, no one is going to inform your boss about your bad credit score. Moreover, it won’t affect your career. Work towards improving your credit score rather than trying to hide it from your coworkers.

6. Repayment terms are difficult to follow

People with a bad credit history have to pay higher interest rates, but some of those rates are possible to pay off. Even lenders who offer unsecured loans don’t risk setting too high-interest rates, as they know that no one will be able to pay them back and no one will want to receive loans from them. If you have a bad credit score, consider coming up with the deal that will work best for you and your lender alike.

If you have a bad credit score and you urgently need cash, you can still get a loan. Just ensure you can pay it off.