SIS - Kudos for taking the initiative to put this together. If there ever was a thread that deserves to 'stick' to the top of the forum, this is it.

Suggestion: Modify myth number 1 by adding the words "or carry a balance" to the end of what you've written. So many folks mistakenly think you don't build a credit rating unless you are making interest payments. Not true. Pay off your balance within the grace period and you still will be loved.

It might also be worth considering adding a myth regarding it being ok to lie on your credit/insurance application in order to get a lower rate. With insurance policies this can result in your claims not being paid. I also like the ones where somebody puts the property in somebody else's name for tax or child support reasons and still thinks they can sell it without the other person's involvement (not sure if I worded this one that well, but hopefully you recall the thread).

Another myth would have to do with the idea (probably originated with car sales) that you could just have a seller 'sign over' a house or business and not have any contractual or tax event implications. The recent restaurant sale thread and aunt's house threads come to mind.

My favorite has to be the idea that you save money by not getting an attorney involved in a legal document or financial transaction until after the deal has gone south.

And then there's the continuing confusion about who the 'buyers' agent really represents in a real estate transaction.

There no doubt are many more myths that cross this board, but those are the ones that come to mind right now.

WalStMonkey said:

<< Not if you're married filing separately because you won't be able to fund the account unless you've made < 10k. The rules are heavily stacked in favor of filing jointly. Even spouses on the verge of a bitter divorce born of mutual hatred and spite probably consider filing jointly, it's that heinous. >>


Correct. You have to construct some pretty esoteric scenarios before it pays to file MFS instead of MFJ.

MeraNamJoker said:

<< SUCKISSTAPLES said:

<< #8 MYTH: "I just got a collections letter, but its only for $100 and I dont think theyll sue me for that so Ill just ignore it. Plus, they dont have my SSN". Bad idea. If you dont dispute it or pay it, it can hurt your credit and end up costing you a LOT more than the collections amount. Even if they dont sue you, they can still put it on your credit report. EVEN if they dont have your SSN. See the debt collection FAQ and related websites. >>

I didn't know that.. but can they find SSN just with name and address ? for reporting to credit agency they will need SSN right ? after all in any aparment (esp. bay area) churn rate is high.. there might be 2 different John Doe's living in same apartment at different times.. >>

Nope.. Just the name and address is enough for the collection agency to report it.. In the example you've given, it would be just bad luck for John Doe # 2..

unknownshopper said:

<< MeraNamJoker said:

<< I didn't know that.. but can they find SSN just with name and address ? for reporting to credit agency they will need SSN right ? after all in any aparment (esp. bay area) churn rate is high.. there might be 2 different John Doe's living in same apartment at different times.. >>

Yes and no and yes.

What's that line from some movie ... "shoot them all and let God sort 'em out"
Welcome to the world of credit reporting. >>

Good analogy!

FYI Given your name, address, and 25 cents, I can pretty much guarantee that I can find your SSN as well as your birthdate, last 4 residences, possibly your phone number, and the same info for your spouse. All for a quarter. Such a deal!

How about the myth that size matters? That 50 inaccessible acres in the Rockies or in a Minnesota swamp or under Florida tides is a better deal/investment than 1/5 acre in a good suburban neighborhood with good schools.

Or the one that you are better off not drawing up a contract for a $100,000+ financial transaction so long as the other party to the contract is your relative/best friend/co-worker, etc.

I do like the myths that seem to pop up from time to time regarding signing leases. My favorite is the 'I rented an apartment with 2 friends who are moving out, but mine is the only name on the lease. So I'm only obligated to pay the landlord 1/3 of the rent' myth.

The other ones that come to mind are more business oriented ...

The myth that if you are a business owner that it's ok to borrow from employee payroll/benefits to fund other "more urgent" cash flow needs. Not true even on a short-term basis. And don't even get me started on the "employees should be sharing in the risks of the enterprise" nonsense. Unilaterally diverting employee funds for any purpose is illegal in most states.

Say it isn't so.
Anyways, that isn't a myth; it's a culture

good one rooster.

Good work SIS

My favorite myth: If a great deal came to me though an email or is advertised on late night TV, I will get rich.

SIS

Your MYTH#1 is included as one of the things to do by an article on the MSN website.

6 steps to building great credit by Liz Pulliam Weston


http://moneycentral.msn.com/content/Banking/Yourcreditrating/P38048.asp

I wanted to mention it in this thread and see what you and others think about it.

Thank you for this thread, all the other threads you initiated, and all the suggestions you make in the various threads.

WSM said "Like dietary fat,.."
Heh, I find myself often comparing debt to obesity for whatever reason.

I see lots of people with enviable HDL levels (above 60); it is very suggestive of heavy alcohol abuse.