Do you have Facebook Envy?

6 Stages of Facebook Envy 

Facebook envy.

There aren’t any forms of positive envy, but Facebook envy might be the worst.

What is it? As we explained in our article earlier this year  , Facebook envy happens when you see a “friend” post about a vacation, a restaurant or a new car—anything that you can’t have—and you immediately feel inadequate because you don’t have those things.

Maybe you’re trying to get out of debt, or maybe you’ve recently lost a job and had to cut way back on spending. You’re in a tight spot.

Meanwhile, most of your friends are walking the credit card wire They might fall any day now, but they’re going to look good on the way down! They love to show off every part of their extravagant, seemingly carefree lifestyle.

So how do you know if you suffer from Facebook envy? Let’s walk through all the stages using an example.

Let’s say your friends Mike and Sally recently bought a brand-new, two-story, four-bedroom house just outside the city. It’s the perfect house—the house you’ve always wanted.

Three hours after closing on their house, Sally posts this Facebook status:

“We are so blessed! Mike and I just bought our dream house! We can’t wait to start our family, grow old together, and live the life we’ve always dreamed of in this perfect home! We are so blessed! I love this house, and I love you, Mike! We are so blessed!”

Of course, the status update isn’t enough. Sally also posts a photo, and, no surprise, the house is beautiful.

For you, the process of Facebook envy now begins.

1) You see the status update. Wow, that’s a beautiful house, you think. I’ve always wanted a house like that, you think. Mike and Sally, they’re such a cute couple. They seem to have everything.

2. You compare. This is where Facebook envy really starts. You compare your little studio apartment to their 3,000-square-foot, four-bedroom home. While looking at the photos, you realize your bedroom would likely fit inside their master bedroom closet.

3. You feel inadequate. Look at their house, and here you are living in this tiny apartment. You begin to feel sad and depressed because you thought you and your wife would have your own place by now. But some bad financial decisions have set you back and delayed your first home purchase. And there are Mike and Sally, living the life and rubbing it in on Facebook.

4. You consider making a change. You’re now inspired, but not in a good way. Before, you wanted to get out of debt, and you were willing to do whatever it took to reach that goal. Now you’re considering abandoning that plan. You’re inspired to keep up with the Joneses—or, in this case, Mike and Sally. You hop on a real estate website and start looking at comps. Right now, you could probably only make a 5% down payment—nowhere near your 20% goal—but you’ve got to have a new house because you want to make your own Facebook post!

5. You start taking active steps to make that change. You call a real estate agent. You visit a couple of open houses. You meet with a mortgage lender and look at some “creative” (in other words, terrible) loan options that will keep you in debt for 30 years. You are in full-on Facebook envy mode now. You’re considering changing all your plans, and your entire future, over a case of Facebook envy.

6. You (hopefully) realize you’re about to make a bad decision. Finally, you hear a voice, maybe Dave Ramsey’s, say, “What are you doing? You snap out of it. You realize this has all been one terrible case of Facebook envy, and you back off your crazy change of plans. Or you move forward and make a terrible decision that will cause major regret a year from now.

Now, this is an extreme example to make a point.

You might not get Facebook envy over a house. For you, it could be your friend’s food pictures, their vacations, all their group photos or even their always-smiling faces.

So how do you curb Facebook envy?

Simply realize that no amount of stuff will bring you happiness. Understand that, if your Facebook friends are like most Americans, a lot of their glamorous, showy lifestyle is thanks to debt.

You’ve chosen to avoid debt, right? So, one day, you can have the house and the vacation—and, most importantly, the legacy for your family—without mortgaging your future.

So if you have an out-of-control case of Facebook envy, maybe it’s time to take a break from social media. Let your “friends” all show off the stupid decisions they make with money, while you stay above it all. You’ll be much better off that way.

Article from: Dave Ramsey: http://www.daveramsey.com/blog/6-stages-of-facebook-envy

 

 

 

Fake Credit Score?? Equifax Goes Fake-o

I just got this email below from collegue and mentor of mine about what is going on with “fake credit scores”. I don’t want to say much let Stephen, explain it detail.

Carlos Samaniego

————

Equifax Goes Fake-o

Equifax couldn’t hold out. The greed of the almighty dollar finally found its way to Atlanta.

Temptation got the best of them.

Equifax has recently joined Experian and TransUnion in the business of marketing their own proprietary credit scores (translation: FAKE scores) to unknowing consumers who think they’re buying real FICO credit scores.

[Sigh]

Here’s the good news… it’s very clear they are not selling a FICO score (if you search for the web page that explains it). To get that information out of the other two, you basically need to beat it out of them.

Here’s what they say…

Equifax Credit Score vs FICO Score:
What is the difference between the Equifax
Credit Score™ and the FICO® Score?

Both the Equifax Credit Score and the FICO Score are general-purpose score models used to predict credit risk. The Equifax Credit Score is a proprietary model created by Equifax. The FICO Score is a model created by Fair Isaac Corporation (FICO) for Equifax’s use. All Equifax consumer services and tools make use of the Equifax Credit Scores unless otherwise indicated. The Equifax Credit Score uses a numerical range of 280 to 850, where higher scores indicate lower credit risk. The FICO Score uses a numerical range of 300 to 850, where higher scores also indicate lower credit risk. The Equifax Credit Score can be used to calculate a score for not only your Equifax credit file, but also your Experian and TransUnion credit files. This gives you the ability to compare your credit scores across all three credit reporting agencies, which is a very important part of understanding your credit. Though both score models predict similar types of risk, it is important to remember that because they were created independently by separate companies, they should not be expected to deliver identical scores. In some cases, an Equifax Credit Score and a FICO Score calculated at the same point in time may be similar. However, in some scenarios the scores may differ, perhaps significantly, based on how the different models calculate risk.

Here’s what they left out…very few (if any) of your lenders care about or use the Equifax Credit Score. That’s selective omission if you ask me.

What this means to you and me is…more confusion.

What it means to Equifax is…more money.

I’m all for making money…but not at the expense of doing the right thing.

I don’t know how they sleep at night.

How can these companies get away
with selling fake credit scores?

Less than 5% of the population even knows what a real credit score is.

We performed an on-the-street survey in downtown Indianapolis a few years back asking people if they knew what their credit scores were. 2.3% of the people interviewed knew…the others were clueless.

All three credit reporting agencies now take advantage of this consumer ignorance. Without it…they wouldn’t have a sustainable business model.

That’s right, the credit reporting agencies profit on our stupidity…Experian much more than anyone else. You see, they bank on the fact that when someone uses the term “credit score” we’ll think it actually means a credit score that a lender uses…silly us.

The FTC last year came out with an impressive counter-punch to one of Experian’s fake credit score websites. They created and aired two accurate videos. You can watch them here…

http://www.youtube.com/watch?v=krG2d7OK8MM

http://www.youtube.com/watch?v=xZ0xsF5XWfo

Although they are somewhat funny and true…the Federal Trade Commission doesn’t have the marketing budget to promote the truth like Experian can promote fake scores and other useless services.

So what can we learn from this?

  1. The only scores you need to know are your FICO scores, created by Fair Isaac Corporation, which are available at the myFICO sites (for information about these two different sites, go to: www.stephensnyder.com/yourficos).
  2. If the score(s) you purchase don’t say FICO, they are fake-o.
  3. The majority of lenders in the United States use FICO credit scores to make a lending decision…not proprietary scores created by the credit reporting agencies.
  4. Stay away from all fancy-pants services that include a free credit score. If a score is free, it’s probably fake. The real ones cost you some George Washington’s.
  5. You cannot monitor all three of your real FICO credit scores. You can only monitor your FICO score from Equifax. Real score monitoring from the other two credit reporting agencies isn’t available.
  6. Your real credit scores are not included on your free credit reports.

Consumer beware.

Stephen's Signature
Stephen

How Many Points Will I Lose?

One of my personal credit coaches and mentors is John Ulzhiemer, he recently posted this article, that I believe is must read for all who care about their credit scores!

If you like a free credit consultation please call me direct at (909) 512-6418

Sincerely,
Carlos Samaniego
_________________________

REAL FICO Score Damage Point Amounts CLARIFIED

A constant question I field day in and day out is “How many points will I lose from my FICO score if I… (enter your own example here)?” For years I’ve told people that credit scoring doesn’t work in such a way that there is an exact number of points assigned to any one incident. It’s based on scorecards, characteristics, variables, and weights… all things that are too complex for the average consumer to digest without significant context. The point is, one item doesn’t equal any pre-determined number of points in your FICO score.

Having said that, an article was published on the MSN website that purports to disclose the amount of points that you will lose if you make certain credit report mistakes. The information from that article was picked up and misrepresented by a different writer and posted on Yahoo!’s homepage for several hours. It was titled “FICO Reveals How Common Credit Mistakes Affect Scores”, which is not what FICO did. By 8:15 am the next day, I already had six calls or emails from reporters asking me about the data and the “points lost” information.

Once again, I’m left to clean up the mess caused by someone else. So, in an attempt to clarify the “points lost” chart floating around on the Internet, I called and spoke with Craig Watts from FICO. Craig is their Director of Public Affairs.

The hypothetical examples used for their score impact charts are just that: hypothetical. According to Watts, the different score scenarios “aren’t meant to reflect every consumer experience” and that your own personal experience “could vary significantly.” Basically, this turns “FICO Reveals How Common Credit Mistakes Affect Scores” into false advertising.

Watts and I both agree that the ONLY way to determine the impact of changes on your FICO scores is to use their FICO Score Simulator tool that’s within the myFICO website. The downside is that you’d have to buy a credit report from them. The upside is that the score simulations will actually use your credit data and not data belonging to hypothetical consumers.

For the first time ever, I will disclose the amount of points I would lose based on a variety of score-damaging actions. I used my own personal FICO score report from myFICO and it just so happens that my score is 780. These score changes are based on my own credit files and thus are not speculative or hypothetical.

Credit Event

FICO Score Damage to a Starting Score of 780

Apply for a store credit card ~ 10 points
Take on a new $30,000 car loan ~ 15 points
Take on a new mortgage loan of $350,000 ~ 15 points
Miss a payment on one account that wasn’t already late 40-75 points
Miss the payments on ALL of my accounts this month 60-110 points
Max out ALL of my credit cards. Utilization percentage is now 100% 50-100 points
File for bankruptcy 195-255 points

John Ulzheimer – Credit scoring and credit reporting expert and author, John is the President of Consumer Education for Credit.com. Formerly with Equifax and Fair Isaac, John shares his unique insight of the inner workings of credit scoring models and the credit reporting industry on CreditBloggers.com.

Wells Fargo Credit-Card Rate To Raise Ahead of New Law

Wells Fargo sticking it to consumers their last chance! It makes you sick!!

Oct. 7 (Bloomberg) — Wells Fargo & Co. plans to raise interest rates on a majority of credit-card customers by 3 percentage points before new rules limiting such increases take effect, according to a company executive.

“This is something we’ve been contemplating for quite a period of time,” Kevin Rhein, group head of card services for the San Francisco-based bank, said today in a telephone interview.
Read more at: http://www.huffingtonpost.com/2009/10/07/wells-fargo-creditcard-ra_n_313155.html