Common Credit Misconceptions

1. A cell phone bill is a great way to build your credit. – The truth is I have been looking at credit reports for the last 5 years and with the amount of people that have cell phones I’ve seen very few people with cell phone bills reported on their bureau. Also it is only reported to trans union not equifax. A cell phone will help to build your credit somewhat but considering the fact that it is not reported to equifax, you will not get much benefit from it.(Don’t listen to those cell salesman in malls.)

2. If you don’t have anything in your name you have good credit... - The truth is if you have had no credit history you are treated almost the same as if you have bad credit simply because lenders/creditors do not know what to expect from you. You will notice that if you fall under this category you will be asked for a co-signer or get a very high interest rate. Cell phone companies and Pay day Loan companies will however offer you an account at this point.. be careful and make sure you can pay back..


3. If I sign or co-sign for someone I am not responsible..- The truth is once you cosign for someone you are both 100% liable for that loan for example if they cant find that person they will find you. when they are making bad report to your history it will state that you were liable and u didn’t pay, this will appear on both of your reports.. My suggestion is don’t do it.. If you have to, make sure the person is stable, make sure you have control, and make sure you are able to pay it incase that person flakes out... You know what just don’t do it not even for a cell phone or an Apartment..

4. If I get taken to court for child support it wont affect my credit..- The truth is that is absolutely one of the worst thing you can have on your credit, it shows up on your report as unpaid family responsibility and most lenders will not give anything to people who wont even pay for their own kids.

By Omari Whyte