by Larry Chiang
Yikes.
The WSJ has an article that is wrong.
ALEKSANDRA TODOROVA wrote Teaching Teens About (Credit) History
She makes some mistakes about credit.
1. Debit doesn’t build credit
2. Secured card?! No that’s wrong.
3. Odysseas Papadimitriou, chief executive of Evolution Finance is plain wrong when he says about credit cards: "Lock it into your drawer, every month that card issuer will report to the bureaus that you’re in good standing". Good standing does not equal good credit score.
Ideally, you’d turn your credit card into a debit card by logging in every week to pay off the entire balance.
Also, you can’t write a credit history article without the concept of FICO and addressing your credit score
Thx Eric Wu for the heads up
Larry speaks on stuff they don't teach in B-school to help you get street smart in doing business. In college, he started a business that helps college students with their FICO score. He loves entrepreneurs, Ben and Jerry's ice cream and after parties. You can reach him at:
