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8 Lies About Your Credit Report You Need to Stop Believing

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credit score myths
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For many, credit reports and credit scores are a mystery. There are so many misconceptions surrounding credit that we often believe things that are far from the truth. It’s important to debunk these lies so that you can improve your financial outlook and not make costly mistakes. Here are 8 common lies about your credit report that many people believe, and why you should stop falling for them. With the right knowledge, you can get your credit report on the right track.

1. “Checking your own credit hurts your score.”

Pulling your own credit report is considered a soft inquiry, which does not affect your credit score. In fact, it’s a smart habit to check your credit regularly. If there are any errors, you’ll want to know immediately. Plus, regularly monitoring your report can help you make adjustments to things like your credit card spending habits, if it is bringing down your score. Be aware that hard inquiries, like applying for a new credit card, will show on your credit report and affect your score.

2. “You only have one credit report.”

There are three major credit bureaus (Equifax, Experian, and TransUnion), and each may have slightly different information. You have three credit reports, not just one. While your score probably won’t fluctuate significantly among the credit bureaus, it’s important to monitor all three. You can choose a credit monitoring service that pulls all your reports.

3. “Your report and credit score are the same thing.”

Your credit report is a record of your credit history. Your credit score is a numerical value based on that report. They’re closely related, but not the same. Both are used when you apply for credit cards or loans. Your credit score and report demonstrate your creditworthiness to lenders.

4. “Paying off a debt removes it from your report.”

Even after paying off a debt, it can remain on your report for up to 7 years if it was negative (like a late payment or collection). Positive accounts may remain longer. While it may seem hard to recover from a derogatory mark on your credit report, it will fall off in time. In the meantime, you can rebuild your credit by making on-time payments and keeping your credit utilization low. Over time, positive activity will help outweigh past negatives in your credit profile.

5. “Closing a credit card helps your credit.”

Closing a card can hurt your score by reducing your available credit. This can raise your credit utilization ratio. It can also potentially shorten your credit history. The number of closed accounts will appear on your credit report. Lenders often prefer to see long-standing accounts that demonstrate responsible credit use over time. Unless there’s an annual fee or another strong reason, keeping the account open is usually better for your score.

6. “You can’t fix credit report errors.”

You can and should dispute errors. Credit bureaus are legally required to investigate disputes and correct any inaccuracies under the Fair Credit Reporting Act (FCRA). If you suspect a discrepancy, you can file a report with that credit bureau. You can also submit supporting documentation to strengthen your case. Correcting these mistakes can significantly boost your credit score and improve your financial opportunities.

7. “You must carry a balance to build credit.”

You do not need to carry a balance or pay interest to build your credit. Simply using your credit card and paying it off on time is enough to build good credit. In fact, you should pay off your cards every billing cycle to avoid paying interest and lower your credit utilization and revolving balances. This ultimately can improve your score. Carrying a balance only leads to unnecessary interest charges without offering any credit-building advantage.

8. “Your income is listed on your credit report.”

Your income is not part of your credit report. Lenders might ask for income during applications, but it’s not something the credit bureaus track. If you have a higher income, you may get a bigger credit limit or be approved for a larger loan. But nowhere on your report does your income show.

Debunking Credit Report Myths

Believing myths about your credit can cost you money, opportunities, and peace of mind. Understanding the truth empowers you to take control of your financial health. By debunking these common lies, you can make smarter credit decisions, protect your score, and build a stronger financial future. Don’t let misinformation hold you back — stay informed, check your reports regularly, and take action when needed. Your credit is one of your most powerful financial tools — treat it that way.

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Does Anyone Have Privilege Any More? The Answer No One Is Ready To Hear

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What is privilege?
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When you think of privilege, you probably think of someone who has been fed with a silver spoon. We use it to describe everything from race and gender to wealth and education. If you have invisible advantages, you’re privileged. But does privilege really exist anymore, or are we all just trying to get by? Has privilege disappeared among economic instability, political polarization, and cultural fragmentation? The answer is yes, but not in the way we are accustomed to.

Is Privilege a Thing of The Past?

In 2025, as inflation eats away at middle-class stability, job markets are reshaped by AI, and even the wealthy grapple with climate anxiety and social unrest, some ask: Does anyone actually have privilege? The uncomfortable answer is that privilege hasn’t disappeared. It’s just become more layered, more hidden, and more complex than the culture wars allow us to admit.

Thinking about privilege is often ignored today. Many of us don’t have this conversation because of fatigue. We’re so tired of hearing about privilege when we are struggling. But it’s important to get to the truth and not look at privilege as a dirty word for someone who has never struggled in life.

In fact, the very idea of privilege has been politicized, weaponized, and oversimplified. People hear the word and shut down because they associate it with blame or guilt. But privilege isn’t always something you choose — it’s often just something you were born into. And acknowledging it doesn’t mean you haven’t worked hard.

The New Privileged Class

So who is the privileged class? Maybe it’s just people who haven’t endured as much hardship. It’s not to say that they have avoided the chaos of life altogether, but have struggled less than some. Privilege today can look like having access to private insurance and good health. It can be a college degree with no student debt. It may even be citizenship in a country that has a strong democracy and no war. Maybe for others, it looks like having a stable job where you can afford childcare.

It could even mean something as simple as generational wealth, like having parents who could help with a down payment on a home, or who didn’t pass down debt. In today’s world, even time and mental space are privileges. The ability to plan ahead, rest, or pursue personal growth is not universal.

Respecting Each Other’s Experiences

We shouldn’t write off each other’s experiences and situations. Just because someone is privileged in one area of their life doesn’t mean that their experiences aren’t valid. No one today is privileged in the same way we once thought about it. Maybe only the ultra-wealthy are truly privileged. In reality, the middle class has all but disappeared in the US, and we all struggle to some extent. Ignoring privilege doesn’t eliminate inequality. But reframing the conversation may help. When we truly walk in each other’s shoes, we can find common ground and understanding.

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5 Hidden Barriers That Quietly Punish the Working Poor

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5 Hidden Barriers That Quietly Punish the Working Poor

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Why the working poor are stuck in poverty
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In 2020, 37.2 million people, or 11.4 percent of the nation’s population, lived below the poverty line, according to the U.S. Census Bureau. With many Americans considered the working poor, it’s important to consider why so many can’t get out of poverty. The reality is that it is extremely difficult to escape the cycle when the system is inequitable.

The working poor face a number of challenges that often go unnoticed or are misunderstood. These barriers aren’t always immediately obvious, but they can have a profound impact on their ability to break free from poverty. Here are five hidden barriers that quietly punish the working poor.

1. Lack of Affordable Childcare

Many working parents in low-income households face the challenge of finding affordable, high-quality childcare. For example, the cost of childcare in 2022 for one child ranged from $6,552 to $15,600. This high cost isn’t feasible for many American families. In addition, many parents living in poverty don’t have a strong support system of family or friends that can help watch their children. Without this support, parents may be forced to choose between working to make ends meet or staying home to care for their children. Plus, if childcare is unreliable, parents may get their hours cut or lose their jobs altogether.

2. Inaccessible Transportation

Transportation is another hidden barrier that can trap people in poverty. Many low-income workers rely on public transportation, which is not available in all areas. In other cities, public transit is antiquated, and it’s hard to get from place to place on time. Workers may spend hours on public transit trying to get to their jobs.

For those who own a car, the costs of maintenance, fuel, registration, and insurance can quickly add up, leaving little room for savings. In addition, if an individual has their license revoked because they couldn’t pay for a driver’s license renewal, insurance premiums, car inspections, or registration renewal, they often are left high and dry with nothing to fall back on. If someone who is poor can’t pay their car payments, their car can also get repossessed. All of these issues tend to be overwhelming and hard to dig out of. Without reliable transportation, workers can lose jobs or miss out on better-paying opportunities that are located farther away.

3. Inadequate or No Health Insurance

Even though many working poor individuals may be employed full-time, they often lack access to affordable healthcare. Some jobs don’t offer health insurance, or the premiums and out-of-pocket costs are unaffordable for low-income individuals. Plus, policies may have high deductibles that workers can’t even afford. This means that minor health issues are often ignored and can lead to serious conditions. Workers may delay seeking treatment until the problem becomes catastrophic. Medical debt can be crushing and hard to pay off. Ultimately, this can lead to bankruptcy or financial ruin.

4. Debt Traps

Many working poor individuals turn to payday loans or high-interest credit cards to make ends meet. These financial products often come with astronomical fees and interest rates, which make it nearly impossible for borrowers to pay off their debt. Plus, these lenders are very predatory and are illegal in some states. If individuals don’t pay back these loans on time, they can owe interest of as much as 300%-400%. This cycle of borrowing and never-ending debt can leave workers stuck in poverty for years, as they pay off loans that barely cover the interest, let alone the principal.

In addition to predatory loans, it can be extremely hard to pay off high-interest credit cards. Missed payments and accounts in collections can destroy your credit for years to come. The working poor often can’t afford more than the minimum payments, and if that, then interest continues to compound.

5. Lack of Access to Assistance Programs

In some cases, some of the people who need assistance the most don’t qualify. For example, you may not qualify for programs, like Supplemental Nutrition Assistance Program (SNAP), if you don’t have a permanent address. Without assistance, the working poor often have to choose between feeding their families, paying bills, or other essentials. This can continue the cycle of poverty. When the poor need it most, there is often nowhere to turn.

Escaping Barriers for the Working Poor

These barriers don’t just affect an individual’s ability to succeed; they also create a cycle of poverty that’s difficult to escape. Solving these issues would require coordinated policy changes, community support, and a reevaluation of how society treats its most vulnerable workers.

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