Money Myths

MYTH #1: Co-signing is not a big deal.

If you believe this, you shouldn’t be allowed near a loan document. When you co-sign for a loan (or credit card), you are agreeing to pay that debt in full if the primary borrower defaults or misses even one payment.


MYTH #2: Student loans are dischargeable through bankruptcy.

Student loan debt for the most part is not dischargeable in bankruptcy. There is a provision that allows student loan debt to be wiped out but only in hardship cases. However, a hardship discharge is a near impossible standard to meet.


MYTH #3: You can’t get credit after you file for bankruptcy.

Not only can you get credit, you might actually get more credit offers after declaring you can’t pay your debts.


MYTH #4: Having too much available credit will hurt you when applying for a loan.

Available credit will not only not hurt you when applying for a mortgage, it can help you. It is important to have a low percentage of credit that you are using compared to credit that you could use. When credit card companies extend your credit limit, this ratio improves and your credit scores rise.