One of the biggest issues facing any consumer is obtaining accurate information. The credit score misinformation crisis has taken a new turn in the age of disinformation, but don’t let this get in the way of your credit rebuild.
Misinformation vs Disinformation.
One of the most important things to remember is the inaccurate information you find online is very likely misinformation. It is not intentional, such as with political disinformation campaigns. Usually, the authors are well-intentioned and generally fact based. But the consequences could be grave in regards to your credit repair.
The following is a quote from an article posted on Westchester & Fairfield County Business Journal based in New York. Author Phil Hall was speaking to Samantha Cross, from the Women’s Business Development Council (WBDC) on their webinar “Financial Foundations: Credit Score Basics.”
A good credit score does not make you a good person, a bad credit score does not make you a bad person,” she said. “It’s just a factual numerical representation of what you’ve done in the past.”
https://westfaironline.com/142635/wbdc-webinar-takes-aim-at-the-value-of-credit-score-knowledge/?unapproved=696792&moderation-hash=21028296e36c534fd5e5688a982c354a#comment-696792
This is well intentioned, based in truth, but not fully accurate. A credit score by DEFINITION is a PREDICTOR of FUTURE RISK. The past might be the criteria in which the score is based, but representing it as simply ‘what you’ve done in the past” is a disservice to the reader.
Another quote from the article is far more problematic to me.
Ross observed that credit scoring can be determined by several companies, most notably FICO and Credit Karma, and she insisted that anyone seeking to keep an eye on their scores can “use any of the credit scores that you can get your hands on, because they’re all going to be similar.”
https://westfaironline.com/142635/wbdc-webinar-takes-aim-at-the-value-of-credit-score-knowledge/?unapproved=696792&moderation-hash=21028296e36c534fd5e5688a982c354a#comment-696792
This is wrong and bad advice. First, Credit Karma does not publish their own score. They license from a 3rd party and this score is not accurate or used by any lender. Second, FICO scores and online scores that aren’t FICO will vary, and often by 50-100 points. You should never track your score long term with a free site unless that site offers FICO scoring.
Lastly, Ross makes the following claim which is shockingly inaccurate:
“Typically, a dispute that gets cleared from a TransUnion report will flow over to an Experian or an Equifax report over time,” she said. “They are all connected, and disputing with one does not require you to dispute with all of them.”
https://westfaironline.com/142635/wbdc-webinar-takes-aim-at-the-value-of-credit-score-knowledge/?unapproved=696792&moderation-hash=21028296e36c534fd5e5688a982c354a#comment-696792
Anyone who has repaired their credit knows this is not accurate, whether or not Ross made the claim in good faith. The three credit reporting agencies are in no obligation to communicate together.
How To Fight Credit Score Misinformation as a Consumer.
The best advice is replication. Is the information replicated online from reputable sources? While the FCRA and FACT have some interpretation variances, laws are fairly black and white. From the decade I spent learning the consumer laws, combined with my experience as moderator on the myFICO forum, I am confident in what I am speaking. However, that doesn’t mean I haven’t engaged in misinformation as well. Samantha Cross has the best intentions in the world. She is using her platform to empower women owned businesses. Her guidance is sound. But if you were reading this article and used her advice without context, it could actually hurt your credit rebuilt.
Trust your source of information.