| Credit Myths Like they say, "Knowledge is | | | | as I don't authorize a charge. Fact: NEVER |
| power." Many times people either act on false | | | | give out your information as a form of |
| information or fail to act because they | | | | identification. When it comes to giving out |
| didn't know what could be done to their | | | | any personal information, be sure you know |
| benefit. This is the case in many areas of | | | | exactly with whom you're speaking. This is |
| life, but on the top of that list is money. | | | | especially true with someone on the phone. |
| And in the money category, you will find lots | | | | Myth 5: If I get in debt too deep, I can just |
| of misinformation about credit. There is so | | | | file for bankruptcy protection. Fact: The |
| much to talk about on the topic of credit | | | | bankruptcy laws are changing to make it more |
| myths that an entire book could be dedicated | | | | difficult to eliminate all your debt in a |
| to it. Let us start with the granddaddy of | | | | bankruptcy, so you may end up paying much of |
| all credit myths. Myth 1: If I cosign a loan | | | | it back anyway. It will also be on your |
| for my friend, it has no affect on my credit. | | | | credit report for 10 years! Hey, if you have |
| Fact: When you cosign a loan, it's like you | | | | NO OTHER OPTIONS, then you should certainly |
| took the loan on your own! It may be true | | | | investigate bankruptcy. However, it's much |
| that your friend is the first one responsible | | | | better to settle the debts if you can Credit |
| for the loan, however, if they default, it's | | | | card companies want you to be in debt because |
| completely your problem. Myth 2: There's | | | | it maximizes their profits. Credit is much |
| nothing I can do about it now. My credit is | | | | more than a piece of plastic, and the |
| destroyed forever! Fact: As long as you work, | | | | resources in this booklet can help you become |
| starting today, to rebuild your credit, | | | | a more informed consumer. Creditors report at |
| you'll eventually get it under control. | | | | all different times of the month, therefore |
| Rebuilding your credit means: (1) Paying on | | | | your score can change whenever your credit |
| time; (2) Looking for better credit options; | | | | report changes. In order to understand why |
| and (3) Learning more about money and credit. | | | | many credit myths aren't true, it's important |
| Myth 3: I'm a complete financial loser for | | | | to understand exactly what credit is in the |
| getting myself into this mess. Fact: It may | | | | first place. Learn More Credit Myths and |
| be true that you're responsible for getting | | | | Facts If you get offers in the mail does this |
| into debt, but that doesn't make you a loser. | | | | mean you afford more credit. |
| In fact, it may not be your fault at all. As | | | | |
| long as you start working on becoming more | | | | The Author Leonel Avalos has a firm devoted |
| knowledgeable when it comes to finances, you | | | | to informational Websites, including Where |
| will ultimately find success in controlling | | | | you can find up to date free Credit related |
| your debt. Myth 4: It's fine to give out my | | | | material. |
| credit card number for identification as long | | | | |