MYTH: A multi-level marketing scheme can be a legitimate business.

FACT: Legitimate businesses don't recruit distributors with the prospect of selling to other distributors. Instead, they talk about the prospect of selling to retail customers.

I agree with Zender. Our first loan back in the early years was a $500 bank loan on our savings. Sure we paid the extra 2% interest but since then we've never been denied credit. Prior, we were turned down for a $75 sofa from JCPenneys (dang! you never forget these rejections)

tooshy said:

<< Prior, we were turned down for a $75 sofa from JCPenneys (dang! you never forget these rejections) >>


Rejections could sometimes be due to some wrong info store people enter in.My wife few years back ,was denied Old Navy credit card and we went and tried on the following day and she was accepted.We think person at counter the day before, might have entered some wrong info.

Of all,best way to build credit is to get store cards.If you patiently use and pay for six months, you will start getting offers for regular credit cards.

MyTwoSense said:

<< Myth
Quality and Price are explicitly related.

It never ceases to amaze me how many people will pay more for something because they believe that this one factor means they're getting a better product. >>

On the other hand, an unusually accurate truism:

Good.
Fast.
Cheap.

Pick any two.

MYTH: "I met with an "AMEX FINANCIAL ADVISOR" who recommended I invest into several AMEX products such as insurance, annuities, etc, and it seems like a good deal".

FACT: While AMEX generally offers many excellent products, DO NOT, I repeat DO NOT, use their FInancial Advisors.

First of all, these people are merely insurance salespeople, and most do NOT have any financial background (they will hire anyone). They are forced to recommend inappropriate products to earn their living, the products are NOT competitive, and you usually need to pay several hundred dollars for a "financial plan". There are several threads on the AMEX Financial Advisor scam here:

http://www.fatwallet.com/forums/messageview.cfm?catid=52&threadid=186605&highlight_key=y&keyword1=advisor

http://www.fatwallet.com/forums/messageview.cfm?catid=52&threadid=210159&highlight_key=y&keyword2=AMEX

Sis said
<< MYTH: "I met with an "AMEX FINANCIAL ADVISOR" who recommended I invest into several AMEX products such as insurance, annuities, etc, and it seems like a good deal".

FACT: While AMEX generally offers many excellent products, DO NOT, I repeat DO NOT, use their FInancial Advisors.

First of all, these people are merely insurance salespeople, and most do NOT have any financial background (they will hire anyone). They are forced to recommend inappropriate products to earn their living, the products are NOT competitive, and you usually need to pay several hundred dollars for a "financial plan". There are several threads on the AMEX Financial Advisor scam here:

http://www.fatwallet.com/forums/messageview.cfm?catid=52&threadid=186605&highlight_key=y&keyword1=advisor

http://www.fatwallet.com/forums/messageview.cfm?catid=52&threadid=210159&highlight_key=y&keyword2=AMEX
>>

You are 110% correct Sis. I know a finance professor, who also coaches CFA's and grades certified financia advisors tests, who says that AMEX advisors are the worst in the field. I met one through Costco and found out how bad they are. Stay away from them

The reply on geeting credit prompted me to remeber another experience, that I and others have found for $300 + purchases.

Myth 90 days same as cash is the best deal

Fact I have often gotten a better price by using cash upfront, anywhere from 10 - 25%. When you pull out the cash and put it on the counter and say this is all I am willing to pay, you will likely get the price at better than the 90 days no financing

AWESOME THREAD!

A few suggested additions, from my own pet peeves (and sad personal experience):

MYTH: "Credit insurance" and "credit protector" programs are a good deal.
FACT: I've never seen one of these policies that's worth the cost. They often promise to pay off your debts if you die, get sick, lose your job or suffer other misfortune - but they're usually riddled with exclusions and very hard to collect on. Even when they work, you have to realize that you're actually paying to protect your creditor - not yourself. (Even worse, you often end up paying finance charges on them, which means you're paying your creditor for the privilege of paying your creditor to protect ... your creditor.) These policies are often hidden in loans and credit-card agreements, but the Federal Trade Commission says it's illegal to deny you credit based on your unwillingness to buy an optional credit-insurance policy.

MYTH: I can save money by paying to join a discount club.
FACT: The benefits of these clubs range from questionable (Sams, Costco, BJs, etc.) to imaginary (numerous scam outfits) - For the "real" clubs, the bottom line is that you have to know how much you plan to buy and in what quantities, and how much those items generally cost. Warehouse clubs are usually only a good deal if you plan to buy in large quantities and have comparison-shopped the items you're likely to buy. Ask for a free membership to look around and take notes. (I found many items selling in multi-packs at Sam's - that were cheaper in singles at the Wal-Mart next door.) For any other clubs, be very careful and Google them before you join or give them any info. Almost all of them are scams.

randomizzer said:

<< The reply on geeting credit prompted me to remeber another experience, that I and others have found for $300 + purchases.

Myth 90 days same as cash is the best deal

Fact I have often gotten a better price by using cash upfront, anywhere from 10 - 25%. When you pull out the cash and put it on the counter and say this is all I am willing to pay, you will likely get the price at better than the 90 days no financing >>

NOT ALWAYS FACT... Many retailers get a "commission" for every credit card application they accept. And that commission at times could be more than any discount they could give you for paying cash. A retailer will almost ALWAYS give you a better deal if you pay cash over using a standard credit card (because of their CC fees). But opening new accounts is pure profit for retailers.

hotandhumid noted:

<< Fact: Most title insurance policies are written to protect the bank not the homeowner. If you purchase standard title insurance and later find out you have a problem with your property, the title insurance company will do nothing for you. >>

Excellent point. Is anyone here particularly knowledgeable about how to intelligently shop for title insurance, particularly the "Extended" policies which (in theory) provide somewhat more protection for the buyer?