Carolyn Feldman of Nationwide Credit Clearing joins us for the first of two episodes. We cover a wide range of topics from establishing credit to the difference between a FICO Score and what she calls a “Fake-O Score.”

When you’re young and you need to establish credit, you may want to consider a secured credit card – Carolyn explains the difference between secured and unsecured, as well as how credit utilization and bill payment affect your credit score.

To get your true credit score, you’ll want to get your FICO Score from MyFico.com. You’re able to look at your true FICO score (that potential lenders see) once per year at each of the three major credit bureaus, for free.

Beware of a website called Credit Karma – this is only an estimate of your score. They have only 2 of the 3 major credit bureaus – Experian won’t participate with them. So Carolyn calls Credit Karma your “Fake-O” score as opposed to your FICO score.

If you’re a Capital One customer, they have a program called Credit Wise. This is a true FICO Score.

It’s important to know the difference between a hard pull of your credit history and a soft pull. When you check your score, that’s a soft pull. There’s no penalty for checking on your rating. When a third party pulls your score, that’s a hard pull and can affect your rating.

Credit cards have billing cycles and statements, and credit bureaus are no different – this will affect when new information hits your credit report. Carolyn says to think of it like a report card. She explains why.

If you find an error on your credit card report, you can challenge it. And, by law, if the creditor doesn’t respond in 30 days, it comes off your report. But remember, often the dispute is with the lender, not the actual credit reporting agency.

We also spend some time on medical bills, which are often a source of financial hardship. Medical bills do not go on your credit report until they are unpaid. This is why it’s a good idea to even make small payments on a large bill, so they remain in repayment.

To reach Carolyn at Nationwide Credit Clearing, you can call her at 248-254-3315 or send her an email at carolyn@mynationwidecredit.com

To reach Paula Christine regarding any financial questions, visit her website at PaulaChristine.com or email her at Paula@PaulaChristine.com