What do Santa Claus, the Easter Bunny and carrying-a-balance-on-your-credit-card-to-improve-your-FICO-score all have in common? Hint: fewer people believe in Santa and the loveable furball that fills up Easter baskets. I’m sure you’ve guessed by now that all three are myths but that doesn’t stop a lot of folks from believing in them.
About 43 million Americans believe that carrying a balance on a credit card and paying interest on it boosts your credit score. Yet all three of the main credit reporting agencies (Equifax, TransUnion, Experian) say that this really doesn't factor into your score. In truth, while carrying a small balance won't hurt your score, carrying too large a balance can hurt it, and it's just not a good idea. So what does affect your FICO score?
Rob West and Steve Moore unpack these for us and recommend the best ways to improve your score. Then they answer some listener questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
Rob and Steve also spent a few minutes with MoneyWise resident economist Jerry Bowyer to discuss the recent surge in the US economy. What does that mean for most of us and how should we view it through the lens of a Christian World View?
Be sure to check out the rest of our website at MoneyWiseLive.org to connect with a MoneyWise Coach or access our books, videos, or any of our free helpful resources. Thanks for your prayerful and financial support that helps keep MoneyWise Live on the air. And if you'd like to help, just click the Donate tab at the top of the page.