When one door closes another door opens; but we often look so longingly and so regretfully upon the door that closed, that we fail to see the one that has opened for us.


Credit Repair Company Expose-TOP 10 "Myth-Conceptions" of Credit


The media, newspapers, internet are full of information, and some of the information concerning credit is inaccurate. One of the things that we clearly want to make available to everyone and that as a credit expert, one should be making available to all of one's clients, and everyone that can be touched, are certain facts about credit that will affect them, affect their lives, affect any financial decision that they choose to do. So, these facts and myths are all being made public.

: You share a credit score with your spouse. That's definitely a myth. Your spouse and your credit report and scores are looked at individually. If you have joint accounts, they'll show up on both your credit reports. If you get an authorized user account for your spouse, that'll also show up on your 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 score for one antoher.

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're applying for a job, they look at your credit score. When you're applying for auto insurance, homeowner's insurance, life insurance, they look at your credit score, they look at your credit history. That's why it's so important to clean your credit up. KillMyBadCredit makes sure that their clients credit reports are only reflecting accurate information.

Myth#3: Always pay your credit card balance in full and that will give you the best credit. The problem is if you have no balance, if you leave your credit card with no balance, you'll want to leave a little bit of balance on your credit card every month (Ideal amount is 1%), to show that you can pay on time. Don't just pay off a balance and leave it as a zero-balance account ongoing, because after six months it's typically looked at as an inactive account, which gives you really no major positive. Where, if you use the account every few months, and leave a very small balance on it, then it will help you.

Myth#4: My mortgage broker can use the credit report I obtained from AnnualCreditReport. The Free annual credit report is weighted differently than a lender's credit report, and does not contain the same data that a lenders report does. From a lender's perspective, there are reports where different factors weigh differently, based on what the lender's requirements are. An automotive lender will get an automotive-based score. Tha's very different than a standard consumer report.

Myth#5: Too many accounts will hurt, therefore you must close accounts. this is a huge myth because of a couple of key things to remember are: 15% percent of your score is based on the average age of your accounts. The more accounts that you have that are older in age, the better the average age of your accounts will be, which will affect your score. Additionally 30% of your score is based on the utilization rate. If you have more accounts that you're not using but you're still keeping them active, it's going to help your score by keeping those accounts going, because your overall utilization rate will average out less. Therefore, never close accounts. Closing accounts will  hurt you. That doesn't mean you go out and get thirty accounts if you have, whatever accounts the consumer has now, advise him to keep them open, there's no reason to close them. But if they don't have a large amount of accounts, there's no reason to go out and get more accounts.

Myth#6: A co-signer is not responsible. In all actuality, a co-signer is as responsible as the signer on the account. In recent years, as well, many mortgage applications were originated based on there being a co-signer, but in all actuality, the co-signer was the primary borrower. And, many times the person who thought they were getting just a co-signer, wound up not even being a part of the transaction in any way. So, co-signer, is definitely responsible. KillMyBadCredit will keep an eye out for educating people about that, and the fact of them realizing that on mortgage applications, they're looked a virtually identically.

Myth#7: If a judge in a divorce proceeding orders a spouse to pay a debt, it's no longer affected by credit. Well, the reality is that judicial orders don't negate an existing contract. The contractual obligations are based on how they were initiated. The judicial order in a divorce decreee could force one spouse to pay, versus another spouse, but that does not negate that spouse's obligation to pay, based on the initial obligation. Therefore, you have to be strongly advising in divorce situations to realize that you don't let your emotions get involved with it. Sometimes you have to pay a little bit even though the other person is responsible, just to save your credit. It's much better for a spouse to pay a car loan, than to ultimately have their credit ruined, and take a long time to be repaired. So, a judge's order does not negate the person's dresponsibility to pay.

Myth#8: Piggybacking does not work anymore. It's another myth. FICO 08, was supposed to change the way piggybacking rules were, which is based on authorized users, but they have since, decided to change that (Lawsuit). Ultimately most lenders are still are not using FICO 08, and it's been out for a couple of years already.

Myth#9: Opting out will increase your credit score. This is something that goes back a long time, and let's discuss what opting out is. As we discuss it, I believe other times inside the book as well. Opting out is a method where you, where a consumer chooses to not have their information sold for pre-screened offers. Pre-screened offers, when you get something in the mail that says, "You're approved for this credit card, "You're approved for that credit card."

Myth#10: Multiple auto loan inquiries increase will hurt your score for each one. In older FCRA models, inquiries had a greater effect on your score because they counted every inquiry for automotive and every inquiry for mortgage. So, if you were shopping around for the best deal on an auto loan, or shopping around for the best deal on a mortgage, your credit score got dinged for each one. The FCRA model realized that this was discouraging from getting the best deal, so they adjusted the model to only count automotive and mortgage inquiries that are done within a certain period of time to be counted as one inquiry.

Please see more common myths in my up coming book, in which I will elaborate more  on the top 10 and add a lot more, which will contain "Top Secrets" that I couldn't reveal on this website, because it's information given to me from a former JP Morgan Chase Top CPA, which is a long time friend of mine.

Yes, the book will be FREE to download or maybe paper back. Hope you enjoyed the read.

by Brandon Coleman - Owner
Coleman's Independence Institute
P.O. Box 46
Atlanta, Texas 75551USA