AYF/GF 136 | Credit Myths


Are you aware of credit myths that people continue to believe in? These myths have been passed along, some for generations, and they can cause big trouble to anyone who owns a credit card. As a preview of his new series, where he plans to take on all credit card misinterpretations, Merrill Chandler debunks five common credit myths you need to know to change your funding game. Merrill highlights five myths and why each of these is misinformation and can do more harm than good. From high credit scores to a good source of credit, discover these common myths to help you level up your fundability™ game.

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5 Credit Myths You Need To Know

In this episode, we’re going to be talking about an expansion of one of my favorite things in the whole wide world. When we get back, we’re going to do a deep dive into a special announcement and exciting news for you. Stay with me. 

I have a big announcement. It’s been almost two years since we started producing the first episodes of the Get Fundable Podcast in 2019. I cannot believe it, two years. We’re into the 136th episode now. We have covered everything possible. We still keep running into new and fascinating ways in which people don’t understand how fundability™ works othey’ve been misled about all of these misconceptions about credit. In fact, some of our very first episodes of the Get Fundable Podcast were about Credit MythsWhat were people believing? It’s those beliefs that have been passed along, some for generations, and we think they’re trueThese credit myths have come back into our awareness in full force. 

I was working at my desk and got a text from a gentleman who now, have as a friend. We met at FICO World. He told me, Merrill, you need to come and join me. Follow this link. Come and join me on stage in Clubhouse.” I had heard a couple of things about Clubhouse, but it’s all the rage among people who are looking to follow subjectmatter experts and learn more things for free. It’s a free platform. When I joined him on stage, he was like, Merrill, knock us out. I know you got some gems out there to share. Share with my listeners what you do, how you do it, and some of those little golden things that they need to know so that they can be more fundable and prosperous in their lives.” 

Unfortunately, many people don't understand how fundability™ works, and they've been misled about all of these misconceptions about credit. Share on X

It doesn’t take me long to start busting out some moves when it comes to fundability™. The first, easiestand safest way to introduce somebody to what we’re doing is through these myths. I started busting out some myths. We immediately got 150 followers. We started our show there. All of a sudden, I’ve always counted on 10, 15, 20 myths. I know what is a misrepresentation, false, and true out there based on what we’ve learned from FICO. I decided to do something that I have not done in many yearsI went back. I went to Amazon and found every book on credit, business credit, and personal credirepair. I bought everything that Amazon had to offer under the word credit. There were 26 of them. 

My goal was to begin to catalog all the myths, misinformation, and misrepresentations. Some were even plain old mysteries that nobody knows where the genesis or the roots of these mysteries came from. I’m through about 11 or 12 of these books of 26. We’re over 230 myths, misrepresentationsand misinformation. I’m blown away. Here’s the thing and nothing on the authors. Every single one of these books has dozens of myths and they’re different. Everybody covers credit in a little bit different wayI pulled all these together. We started cataloging them. 

In one of our meetings, we had a brilliant idea. This brilliant idea was validated by our producers, which are Tracy and Tom Hazzard of the Podetize crewBrad was looking at it. He had some amazing contributions. It’s this group effort of, “What do we need this new show to be about?” We’ve been gathering and documenting every one of these myths. Here’s the special announcementWe’ll let you know when we drop it. We’re a whole new show. It’s called the Credit Con Show. For those of you who know me, there’s a double entendre somewhere in there, but we thought it was an awesome title to the show. 

The show is going to be a mini-bite. Not one is never going to be over ten minutes long. Every single episode is one myth and then what the truth is behind that myth. You‘ll be able to go down that entire show and see. I think we‘re even going to name them. They’re not in order, but myth 1, 2, 3, 4, 17, 1834, 226, etc. The important part of this is they’re bitesized because we want you to get through as many of these as fast as possible so you can at least change your funding game. We got to level up our game. We’re going to debunk one, tell you the truth of itand we’ve even labeled them, “This one is a myth. 

A myth is one that lasts foreverWe could never seem to get rid of it, but then there are misrepresentations by credit repair companies, credit bureaus, and FICO. What are the misrepresentations? What are the straightup misinformation? The classic misinformation is, “Credit Karma and their scores are meaningful.” Without further ado, I want to include you guys in on this good news. We’re going to give you a preview of this new series and some samples of these misrepresentations, myths, and plain old hogwash that’s out there in the marketplace. If we’re lucky, I may be going through the books where we get them and where they came from. I wanted to grade these books by how much information, “Is it an A-plus book? Is it a Bminus? Is it a D-plus when it comes to the intel that’s available?

A High Score Means You’ll Get Approved 

Let’s start with the five common myths. Again, there’s no way to put these in an order of the most killer myth, even though we know scores are not fundability™. It’s probably the number one hogwash when it comes to myths. Number one, a high score means you’ll get approved. How many times have we talked about this? That is blatantly false. We have dozens, if not hundreds, of people who have come to us over the years. “I’ve got an 800 plus credit score. Why won’t anybody give me money? It’s based on retail cards.” These myths keep hanging on out there. 

By the way, we’re also going to be doing this with our Instagram and LinkedIn. We’re spreading the debunking of the mythology of credit and funding for your benefit and ours. Number one, a high credit score means you’ll get approved. We know that’s not true. FICO 40 borrower behaviors tell you whether or not you’re going to get approved. A high credit score helps you with your interest rate that they’re going to charge on that loan or credit card. It may help you with the terms of your loan and get you more money if you have a high credit score, but it’s not going to get you approved. 

Retail Cards Are A Good Source Of Credit

Number two, another devastating one that seems to be blasting more and forever, is that retail cards are a good source of credit, especially for starting out. There’s a group out there called The Credit University and they sell all my words. I will be going headtohead with those guys as well in one of our Truth You Trust episodes here in Get Fundable. When it comes to the Credit Con Show, retail cards are not a good source of credit, especially to start out with. You automatically get negative indicators from FICO because you’re borrowing merchandise against merchandise. You’re not borrowing cash. There’s a whole bunch of reasons for that. If you haven’t been to the boot camp, make sure you go to GetFundableBootcamp.com and find out the truth of all this stuff. 

Making Your Kids Authorized Users Is A Great Way To Build Their Credit 

Number three, making your kids authorized users is a great way to build their credit. How many of us have heard that, you guys? They’re going off to college. For emergencies, we want them to be able to have access to emergency money. We know that ends up on their credit report, that authorized user. Even if you take them off, it’s going to stay on for ten years. The message you send is that your son or daughter cannot stand on their own two credit feet. That’s not true. We’re here to help them build profiles from sixteen on. They can’t engage credit instruments until they’re eighteen, but if we do this right, we can start them at sixteen and you make them bulletproof. Myth number three, making your kids authorized users is a great way to build their credit. It is not. It can harm them. If we need to give them access to funds, let’s get them to have their own credit card that is then used for emergency purposes only and we train them accordingly. 

You Can Get High-Value Business Credit Cards Without A Personal Guarantee

Number four, you can get highvalue business credit cards without a personal guarantee. This one is pernicious. Pernicious is just a fancy term for stubborn. We were iClubhouse and a gentleman was on there. He was like, “I am so excited because my personal credit sucks. I want to be able to get business credit cards without a personal guarantee. They call it a P and G, personal guarantee, a PG card. They’re not out there. If they are out there, it’s only going to be certain types of usually like credit unions or tier 2 banks that require a long-term relationship for you to have a personal guarantee or it’s going to be one of these equivalents of tier 4 cards that we have on the personal side like Credit One Bank or First Premier. They’re going to be low limits. No one is going to give you a $10,000 business credit card and not have a personal guarantee. There’s got to be something else there that may be secured. It’s not personally guaranteed, but they’re using your money. That is a myth since the day it came out since 2008 when the funding guidelines changed significantly with all the major banks. 

The FICO Score I Get From My Bank Is The Same Score Used For Approvals

Finally, number five, the FICO score I get from my bank is the same score used for approvals. For those of you who have been to the boot camp, this is not true. Even if it says FICO, there are 28 FICO scores. There are different additions or versions of the software. There’s 542. There’s FICO 8, FICO 9, and now FICO 10. There’s autobank card, mortgage, and review scores. Review scores are likely the ones that you get from your bank as your free FICO scoreAs the name indicates, FICO 8 is a review score. It’s a soft pull score. It is, “Let’s check these guys out score.” It is not used in approvals. If you read the fine print of what the bank offers you, you’re going to hear the similar words that I’m speaking right now. 

It’s used for educational purposes. It may be different based on the day you pull it, the bureau that’s pulled, or the type of score that’s pulled. There are a number of factors. Even if it says FICO and it’s from your bank, if you look at it and go, “I have a 720 credit score,” but you go buy a car, they’re going to pull a FICO score that is your auto score. It could be FICO 10, FICO 9, FICO 8, or FICO 542 for that auto score. It’s about damn time that I set up this whole brandnew show, where we’re going to start every single episode in 5 to 10 minutesHow many of you like and love what we’ve been talking about? Like, comment, and share. 

AYF/GF 136 | Credit Myths

Credit Myths: A high credit score may help you with the terms of your loan and get you more money, but it’s not going to get you approved.


If this is meaningful to you, share this with your family, friends, and associates. How many of us have believed any one or all of these myths? A high score means you’re likely to get approved. Retail cards are a good source of credit, especially for beginners. Making your kids an authorized user is a great way to build their credit. You can get highvalue business credit cards without a personal guarantee. The FICO score I get for my bank is the same score used for approval. We already have 230 of these and I’m not even halfway through all of my books. That’s just a glimpse of what we’re going to unpack in this new show. Guys, follow us and stay tuned. If this information has been eyeopening for you, then spread the word. Like, love, spread the love, and get it out there. 

Share this episode with your friends and family because we need to wake up as many people from the credit matrix as possible. If you do, even if you respond positively to any one of these five and you changed your behavior, you’re already more fundable. You didn’t pay me a dime. You didn’t do anything else but become aware of the falseness of what we have learned over time. It is always a pleasure to be here. My job is to make getting you the funding the least expensive and the most approvals and limits possible. I will see you on the inside. 

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