TOP
CREDIT By: Julie Macc
MYTH CONCEPTIONS OF Most of us carry around mental images of the life we would like to be living. Whether we achieve that life depends on many factors; after our faith, for many the most important element for our “dream fulfillment” is creating concrete financial stability. In today’s economy, that can be quite the challenge, not to mention the unexpected life experiences that pop up along the way! I am the first to admit that I have also experienced challenges I am now grateful for along my divinely created path to financial stability, and it is those life lessons that led me to find my life’s joy and passion to Found a financial literacy program, Simple Money Choices and write a book “DIY Credit Restoration” as a companion piece. Everyone reading this already knows that your personal credit file impacts your life and 85% of consumers have inaccurate or wrong information on their personal credit report. Despite what several “financial gurus” have told you, to survive today, you need a credit card to use in emergencies! The media, newspapers, and internet are full of incorrect information regarding Credit. One of the things that we want to make available to you, your family, and friends, and everyone else whose financial lives you touch are facts about how credit works and reports on your consumer credit report.
MYTH # 2: Your credit score only counts when you're looking to borrow money. HUGE Myth! Your credit score right now is looked at for almost everything you do. When you are applying for a job, auto insurance, homeowners insurance, life insurance, or contractors bond, among others they look at your credit score and they look at your credit history. That's why it's so important to monitor your credit and clean it up if needed. MYTH #3: Signing up for a “self” reporting service that you see advertised that will “boost” my score. It does not in fact “boost your FICO® score. Only large companies such as your bank, credit card issuers, and so on that are in contract with the Consumer Data Industry (CDIA)can report to FICO® databank for a score. If you read the fine print, the bureaus are offering a “Vantage” score which the lenders do not use. The information collected when you sign up and remain in the system can be used to resell you more products! And do you really want to provide these companies with all your financial information they store for your lifetime? Look at all the times they have all had security hacks! MYTH # 4: Too many accounts will hurt; so, you must close accounts. This is a HUGE myth! 15% percent of your score is based on the average age of your accounts. Fact, the OLDER the revolving account, the BETTER! The FICO® system loves old accounts with a good paying history! MYTH #5: Piggy backing does not work anymore. It's another myth. Piggybacking is when you are added to or you add someone to a open revolving account as an authorized user. FICO 08® was supposed to change the way piggybacking rules were, but they have since decided to change that (lawsuit).
Below are a few financial facts to help you lead your path to financial stability.
MYTH #6: Opting out will increase your score. Opting out is when a consumer decides not to have their information sold for pre-screened offers. While this
MYTH #1: You share a credit score with your spouse. Untrue! Your spouse and your credit report and credit scores are looked at individually. It is based on your social security number, which is unique to you. If you get an authorized user account (also known as "piggybacking") for your spouse, that will also appear on the report. However, if none of your accounts are joint, and you don't have any authorized user accounts, there will be nothing that will affect your individual score.
may help prevent Identity Theft, there are no point gains for the FICO® score.
24 | Hope Is Now Magazine
Made with FlippingBook - professional solution for displaying marketing and sales documents online