.comment-link {margin-left:.6em;}


Debt Help

The Debt & Personal Finance Blog and Magazine

Friday, January 25, 2008

Can You Really Buy a Great FICO Score?

With every great industry comes subindustries; the housing industry is no different. From the traditional mortgage lending industry emerged the subprime mortgage industry. However, now that subprime lending is mainstream, companies who offer quick FICO fixes for individuals who have further damaged their credit through subprime borrowing abuses or other poor credit usage are now coming to the foreferont.

Yes, you can buy a good FICO score these days.

However, you might not be able to do it for long. These kinds of companies use legal loopholes to cosmetically establish good credit scores, and neither the Fair Isaac Corporation nor mortgage lending industry leaders are happy about it. These quick credit fixes are achieved by essentially attaching individuals with poor credit to the loans and credit accounts of others with good credit - and it's legal! This, opposers argue, will inevitably lead to more woes in mortgage lending scrutiny and foreclosures because people who really should not be approved for loans will be.

Furthermore, many think it to be unethical, as it is a false positive of sorts concerning one's creditworthiness. Fair Isaac is already changing it's formula to exclude some of these slick maneuvers from counting toward FICO score calculation. Industry whistleblowers are calling for further regulation. It seems like this 'insta-credit' subindustry might be of the "fly by night" sort with this level of opposition.

But what do I know - upon seeing the first episode or so, I predicted that the Power Rangers would flop, and I was absolutely sure that "Friends" wouldn't last.

Go figure...

Labels: , , ,


--> CLICK HERE TO VOTE IN THE DEBT POLL <--

1 Comments:

Blogger FeelessBalanceTransfer.com said...

The next generation of the FICO scoring system will address the piggybacking issue.

Saturday, January 26, 2008 9:20:00 PM  

Post a Comment

Links to this post:

Create a Link

<< Home


Balance Transfer


Debt Help

Entire website copyright © 2024 DebtHelp.tvSM
All rights reserved.


Information in this website is provided for educational and/or entertainment purposes only.
The opinions expressed in this blog are not necessarily the opinions of the owners of
www.DebtHelp.tv or www.MyDebt.us. No entries posted in this blog should be interpreted
as financial recommendations or professional advice. Consult a financial professional
before making important decisions related to debt consolidation plans, bankruptcy or tax
debt situations, credit repair services or any loan product, including, but not limited to,
debt consolidation loans, business loans, personal loans, education loans, IRS payment
plans, first or second mortgages, credit cards or car loans.