Greetings Red Phoenix Nation! I have missed you very much, and I miss blogging and writing informative and feel good posts! I've been busy helping people and want to help the masses understand the who what and why of credit! Here we go! MYTHS!
Credit Scores! FICO is who you care about, and that's it! FACT!!!!! All those web-sites that you check your "score" on, not accurate at all! Their scoring system is Vantage Scoring and is usually off by an average of 35 points. (for the better) You want your score that lenders care about, check out www.myfico.com
I pay my credit cards off every month, that's perfect right?!?! NOPE!!! FICO will view the fact that you pay off your credit cards every month is not using credit. You are using your cards for a rewards program: to get miles or cash back... Carry a 1%-10% balance every month and it will help your FICO score. *alert* if you play that game, be careful! The banks are "banking" on the fact at some point you won't be able to pay off that debt all at once!
Paying a collection account will re-activate a collection?!?! Not true but a scare! When it comes to collection accounts, go ahead and pay them. The account will be paid and that does not re-activate an account, that's old school folk lore.
Keeping my credit cards at 30% of their available balance will max my score! FALSE! That's not the magic number at all, see above. 30%-50% about the same, when you get above 50% of your available balance then we have issues. Keep those cards around 10%, we good!!!!
I paid that collection, they said they would take care of if! WELL!!! they took care of it, that's for sure! You paid it, but they don't won't take it off your credit and often times they won't tell the bureaus it was paid. They tell you what you want to hear to get you to pay! get it in writing, then you have to take care of it yourself or get a guy like me to handle it.
Those are a quick few hit friends, there are many. Google doesn't have all the answers, I don't have them all either. I have a lot of them and up to date on most, but we do need some trial and error. Fact is, many of us say "how can they get away with this?" "something should be done" whatever your statement is, I agree. However, you are one of the many millions, and I mean millions that feel the same way. I don't judge, but we also need to take some responsibility and rock our life the right way. Let's get after it and get it on it! if you need me:
john@redphoenixco.com or to read my story and what I've been through www.redphoenixco.com look for it, I have it on there friends!
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