Hello, everyone and welcome back to a new video Sean's, a name and credits. The game today we're taking a stroll down mythbuster Lane, as we look at some of the most popular common misconceptions when it comes to credit. So what is the truth when it comes to credit, because so many people have no idea, because credit isn't necessarily taught in schools so because of that today I want to jump into and tell you the truth when it comes to some of these massive misconceptions. This is so prominent that the other day, my business partner, which by the way, is an incredibly smart and financially savvy fella said: oh, I just got a notification on my credit score in town and before he even said why I looked at him and said: oh Is it because of your credit utilization? He was like yeah how the hell did you know that, and the thing is, is when you're new to credit and you get yourself a few credit cards which he did.

No one knows anything about credit utilization. So that's just one of the major things that kind of goes on in the credit world and I've got a whole list of them today that I want to break down and kind of tell you about, because again, this stuff isn't taught in school. So a lot of people have no idea when it comes to the credit world. Again, if you don't do the research on credit, you'll never know, what's going on so +1 to you for actually watching this video and doing a little bit of learning today, because today I'm going to be breaking down the 9 most popular myths when it comes to Cred and Before we jump headfirst into all of these myths, I need to tell you two things: one all of the myths in this video actually originate from a buddy of mine, Pierre, who is the absolute goat when it comes to credit, he actually runs his own Credit repair company and has helped hundreds of my clients in the past boost their credit scores.

So if you want more information on him down below, I want to thank him again for helping me kind of form this video today and then to lots of people. Have no idea what their credit score actually is. So I'm gon na leave a link down below to a credit monitoring system that I absolutely love and find a tremendous amount of value in. I use it every single day to check my credit score and checking your credit.

Score is incredibly important, do not use Credit, Karma or Chase Bank or all that other BS. Everyone tells me I'm a mortgage lender. I get so many people say. Oh well, my Credit Karma says: I'm got a 650 and then I pull their report and I'm like you've actually got a 605.

Sometimes it just be like that. But again it's just really important to know exactly what your credit score is because it can save you. Hundreds of thousands of dollars over the course your lifetime, so I really appreciate the credit monitoring system. Both those things that I just mentioned will be linked down below, but myth number one.

You share a credit report with your spouse. No, I have no idea why so many people think they have the exact same credit score as their spouse, when that is not even close to what the case is because each of you are two separate individuals, even though you are married, you each have your own Separate financial, fingerprint aka, your own financial credit score. The only time that would remotely be the case is, if you were married at the age of eighteen, and you have never opened up a credit card on your own or paid a utility bill or got a loan or did anything that was in your name until You were 18 and you happen to also get married on your 18th birthday and then every single bit of credit from 18 til. The day you die is exactly what your spouse.

I mean that is like ridiculously unheard of and in fact I have pulled like I said, hundreds and thousands of credit reports and I have never seen two individuals have the exact same scores. I have never seen it yet so remember you are your own person with your own financial fingerprint. Myth number to a cosigner is not financially responsible for the debt that they cosign on. Only the primary account holder nope.

This is a very dangerous one that can really hurt you, and I have seen it hurt numerous people in the past. If you cosign for a day or you cosign on a credit card, you are financially obligated to that debt or to that line of credit. No matter what it doesn't, you don't have to spend a dime or pay any payments towards that, but you are financially responsible for it. So if the primary account holder defaults on that or makes late payments or does anything negative, you are impacted as if it is your primary account.

So it's very important when you cosign or sign on the dotted line for anything that is tied to your name and your social security. Number. Okay, now myth number three, and this is a tricky one. If a judge in a divorce proceeding basically says you're splitting up, you are responsible for that debt and if that person doesn't pay on that debt, this person over here is no longer liable.

That's a myth. Unfortunately, if your name is on the debt, regardless of what a judge rules in a divorce proceeding, you are still financially obligated to that day. You cannot say well, no, that shouldn't impact my credit, because here's the divorce decree and I'm not obligated on that debt. Unfortunately, yes, you are, your name is still tied to that debt and even though you got a divorce and the judge said your other, your ex spouse has to pay for that.

It doesn't matter, you're still obligated if they choose and not pay it or pay late. On it, or do anything derogatory that one is seriously unfortunate and I feel so bad for a lot of people who are stuck in that situation, where they have a divorce decree, but it doesn't matter still impact your credit score. It sucks but myth number four, and this is arguably one of the most important ones on this entire list and it's the old classic. Oh well, I make my payments all on time, so I never need to check my credit report.

That's like applying the logic of. Oh well, I can't get an STD if I don't get tested, so we're good like what that's absolutely ridiculous. You should be checking your credit report at least once every six months, I'm on the extreme side. I probably check it every other day, at least once a week, but you should be checking it once every six months and it's super important that you keep an eye out for everything you see on there.

If something is unfamiliar to you, that can mean that someone stole your identity or that maybe there was a mistake, mistakes do happen and if it happens on your credit report, well that's a pain in the butt to get rid of so check. Things like addresses - and you know your credit lines in all of your monthly obligations and everything that's on there just be really familiar with it. That's why it's super important to get that credit monitoring service that I mentioned earlier in the video again it's linked down below, but I know exactly what's going on with my credit profile. So if there's ever an heir or ever something that happens, I'm immediately notified and can take care of it immediately, rather than letting it sit on my report for years and years and then eventually going on crap that really hurt my score.

How do I get rid of that now and then it's way more expensive myth number five, which I really don't understand, but it's the fact that people think checking my own credit score will in fact hurt my credit score because it's an inquiry know only a hard Inquiry may impact your score, not definitive, but a hard inquiry may impact your score by one to three points, and that's only when you are inquiring about new debt. That is what a hard inquiry means. It means you are inquiring about getting new debt, whether it's a mortgage, a car, a new credit card, anything that might tell the credit bureaus hey this person's looking to carry more liability. That is only when it may impact your scores.

If you do a soft credit inquiry, which is basically just checking your score to you, know just kind of see where we're at whether it's me checking my score or an insurance provider who just says hey. We want to see where you fall in terms of your insurance coverage by what your credit score is, so we're not giving you new debt we're just checking where you're at and those are called soft inquiries and those do not hurt your score at all. So a lot of people get really confused going. I don't want to check my own score because I don't want it to count as a hard inquiry.

If you're not gon na be giving yourself new debt, it's not going to count as a hard inquiry, and it's not going to impact your scoring. Even when you do get a hard inquiry, it bay early impacts your score, if any at all myth number six, which I hate a ton and it's the old. Well, you can go over your credit card limit just a little bit because the credit card company authorized the payment, so it must be okay. No, no! No! No! No! Of course, the credit card company is going to authorize that purchase now that you're over the limit.

They set, they can now charge you so many more fees and a higher interest rate and hammer your credit make so much more money. Of course, they're going to authorize that payment. But if you're spending over your limit, you are going to get hammered on your credit score and it is nowhere near okay, even if you've got a credit card, that's like a $ 300 limit and you spent in three hundred and five dollars on it. I've seen it drop people's credit scores by like 50 points overnight.

That is one of the worse things you can do is max out your card and not only max it out, but go over that amount that you have. That will absolutely kill you and just because the credit card companies allow you to do that, it does not make it. Okay, do you take anything away from this entire video? It should be credit utilization. If you want more info on kind of credit, score stuff then check the description.

I always leave some really good videos on there that I made on how to boost your score and how to keep your score at a great level. Myth number seven is a really important one and I totally understand why a lot of people find this hard to understand, because it was hard for me to understand that first, two, but myth number seven, is the fact that if you pay off an old collection account, It will increase your score, unfortunately, usually not. This has hurt so many of my clients in the past, and he and I totally understand why, if you have an old collection on your report, that's like five years old, okay and you pay that sucker in full. That collection was five years old and the credit companies were kind of seeing.

Oh, you know five that's five years ago, you know that's in the past, that's no big deal, but when you pay that five year collection and you bring it current now - the credit companies go oh well, it was five years old, but now it's a brand new Account that's in collections and it usually actually hurts your score. So I never recommend people pay old collections off because it's most likely going to hurt your score. Instead, what I tell people to do is: don't pay the collection off. What I want you to do is I want you to call the collection agency or the debt collector whoever's.

Holding that account and say look. This is five years old. Okay, I can either not pay this and you guys make zero money or what I'm gon na do. Is you know I'm gon na pay you five hundred dollars, but I want to deletion letter and they'll go most of time.

They'll go okay sure. Once you have that deletion letter you can then take that to the credit, bureaus and say look, this is deleted. It'll get to lead it off your report and that's when your score will actually go up. Paying for a deletion letter is way different than paying a collection off super important, but myth number eight and this one that confuses people a lot too.

But the credit bureaus a lot of people think that the credit bureaus are a government agency, no they're, actually not a government agency. All three of the credit bureaus are for-profit privately held companies. One of those companies do they are designed to make money. Now, with that being said, though, they do have to comply with some federal and government guidelines, so I would highly recommend you actually look into the FCRA Government Act.

It's really important when it comes to actually your financial fingerprint and your credit score, because that FCRA, Fair Credit Reporting Act will really tell you what your rights are as a consumer and it's pretty important to kind of know those things and then lastly, myth number nine, Which is kind of a cool one, and it's the fact that a lot of people think credit repair is illegal and all credit repair companies are kind of a scam. Not really so that's pretty much a myth in terms of the fact that credit repair is illegal. It is not illegal credit repair is actually pretty important. A lot of people think that you know credit repair companies promise.

Oh, I know you've got all this debt on your report, but we're gon na get all that removed and people think that's too good to be true. I don't trust that whatever my debts are, I'm obligated to pay on them and for the most part that is true, but again, mistakes do happen. On credit reports, identity theft is a thing. A lot of things can kind of lower your score on a credit report.

That might not necessarily be your fault so because of that, you could hire a credit pro who can kind of clean up your report and get it looking spanky fresh and new and you're 18 years old and again, a lot of this comes down to the FCRA. The Fair Credit Reporting Act you can actually see in those guidelines that credit repair is. You know it is legal and it is good. I talked about this in the past a lot of my videos, if you're not willing or you don't understand the process of cleaning up your credit, then I highly recommend you hire a pro, but if you know what you're doing you're really well-versed on the subject of Credit - and you can do all that yourself, then do it yourself at the end of the day, a credit repair specialist is just like any other specialist like could I could I mow my lawn and could I clean up all the landscaping on my house yeah? I could do it and it would probably take me three times as long and it wouldn't be as good of a job as if I hired a landscaper who does this every single day, that's exactly how credit repair works and actually go back to this whole myth Is if you actually look into the FCRA title 15 United States Code, section 16, 81: the following States regulates the collection, dissemination and use of consumer information, including consumer credit information.

It basically gives you the right to dispute and kind of question anything. That's on your report and because you have the right to do those things, that's kind of the basis of what credit repair is and that's why credit repair is not illegal. In fact, it is incredibly legal and it's why it's our last myth on this list and that's a good segue into the kind of conclusion of this video again, I want to say thank you to my buddy Pierre, who does credit repair again. I'm gon na leave him a link down below that runs, but I'll leave them linked down below.

I want to thank him problem. We formulate this video and hopefully you learned something new. I want to know in the comments down below which myths were new to you. For me, I went 1 for 9.

I knew pretty much all of them except one and that one myth was actually the divorce myth. I've always thought that if it's ordered by a judge of its court order, then that's kind of you know. That's the wall. That's the ruling, but I guess I guess it's not.

You know, so that's something I learned new today. Hopefully you learned a lot of new things again. Let me know in the comments down below what you went for for me again. I went 1 for 9 and if you enjoyed the video, give that a big thumbs up hit that like button and subscribe for more content like this, I'm always trying to release information and content.

That's gon na put you in a better spot. So again, hopefully you enjoy the video and I will see you in the next one.