183 People Helped
Member Since: May 2014
I'm buying a house. Take ALL your credit scores from EVERYWHERE and throw them out the window. The mortgage company pulls from their own special credit score calculator and it's nowhere near the same as the three credit bureaus, FICO or the scores you see here on CK, nor the scores your credit card companies claim your scores are. Captial One 'tracks' your credit score via Transunion but it's stayed the same for the past 9 months. Discover uses FICO which is completely different from the FICO score at Bank of America. The scores my mortgage broker pulled vary by almost 100 points, they're from Equifax, Experian, and TransUnion. Naturally, they take the smallest score of the three. They don't average them. They don't pick the high score. They don't throw the three in a hat and draw one. They simply pick the lowest score and base everything on that ONE number. The most defining score, regardless of ANY OTHER FACTOR WHATSOEVER, is what they'll base the entire mortgage process on, from what plans you qualify for, to interest rates, to how much you'll need to put down and pay in closing costs. That single three digit number, which will be the determining factor above all else as to what house you can buy. A 30 year loan is based on one number. Your house is based on one number. Your most (for many people) expensive purchase in your life is based on ONE NUMBER. Well, that one number won't be what you think it is. The one that they pulled out of their *** for my mortgage is lower than ALL my scores reported EVERYWHERE else. Even the bogus TransUnion score Capital One claims I have.
So, credit scores ARE a joke. If you think different, more power to you. The entire financial industry is here for one purpose. To make obscene amounts of money. They can't do that if they calculate credit scores 'correctly'.
BanksStealEveryDay's response was:
If the fee is deducted from the loan amount, why wouldn't interest still apply to the amount of the fee? You asked for 9500, you received 9500, minus the origination fee. Unless I'm missing something and you had already paid that outside of the loan total of 9500?
BanksStealEveryDay's reply was:
Why shouldn't he/she give advice and how is that 'very risky'? I have 4 credit cards, 3 that I've obtained within the last 12 months. $300 starting limits. 2 of those are now $2,300 each, one is $600, my oldest is $7,500. How did I get the $2,300 on the two newest ones? Paid all my monthly bills with them, then paid them off every payday. Every single bill was paid using those cards, rather than simply using my checking account. The checking account paid off the credit cards. Simple. The cards were not used to buy stuff I couldn't afford, ONLY to pay normal monthly budget. My credit score has jumped over 100 points.
If I have a relapse and become stupid as I was around 10 years ago, then yeah, it would be risky as I'd just run out and rack up those cards and drown in debt. But I was young, immature, working full time, but raising 3 kids, and pretty much just spent money (read: used credit) without using an ounce of common sense.
Obviously, it's a scam so the insurance companies can charge whatever the hell they want. The calculate this magical score based on how many days of sunshine there were in January 1963 and multiply that by how many people they're going to rip off this month and viola, they have the amount they're going to overcharge everyone... BECAUSE THEY CAN. There is NOTHING you can do about it.
Credit scores the consumer sees are a complete joke. There's not ONE single consumer viewable credit score that will match a score a creditor sees. The consumer scores are ALL inflated. Every financial institution that issues credit cards and claim one of their features is viewable credit scores, couldn't care less whether it's accurate or not.
I've actively rebuilt my credit over the past two years. Nearly 15 years ago, I filed bankruptcy and had a foreclosure, and it's taken me this long to decide I'd like to buy a house instead of simply renting for another 15 years.
One of my credit cards has displayed nearly the EXACT same credit score +/- 10 points every month for nearly those past two years. It repeatedly reminds me that no matter what I do, my credit score is never going to change. Inquires: that credit card website couldn't care less. Removed collections: so what, my score remains the same. Low CC utilization across the board: it didn't bat an eye. The funny thing is, this particular credit card company; of which I have two cards, increased my credit limit on both cards by 1000% less than six months ago. But whenever I login to those cards' website I see a credit score that just won't increase!
I've had five collections removed from my credit report around a year ago. Sued the collection agency and less than one month after they were informed they were being sued for illegal debt collection: BAM, my credit reports were completely void of any collections, they were GONE! I paid off my auto loan almost a year ago, and shortly before that dropped $7,000 to almost pay off one of my visa cards. That card's limit has since doubled. I've added a couple credit cards and have had my limits increased from 2 to 5 times their original limits. My credit cards are between 4 months and 7+ years old. I've never missed a payment on any of them. Never missed a payment on my former auto loan.
So, here's the total bull**** part. Of my nine credit cards. Yes, that is correct. Nine credit cards, four of those being two accounts each from separate lenders; so I have 7 financial institutions claiming I can track my credit scores online; EVERY SINGLE DAY, 24 hours a day, to help me keep track of my money management. it will help me become more responsible financially!
Then I go to buy a house. I get pre-approved. I'm informed of my limit, that I qualify for loan program X, and be prepared for fees of L,M, N, O, and most likely P. 93 days later, my credit report is pulled because they only hold them valid for 90 days. I no longer qualify for the loan because my credit score is far too low and the reports were showing credit card balances that were higher than 90 days ago. Remember Mr. Credit Card that claims my score is always going to be XYZ? That balance was from 60 days prior to the new credit report my loan officer was holding. So, it was INACCURATE. The credit score that card receives from TransUnion, not even close to the score on my latest report the mortgage broker says I have.
So, every month, Credit Karma, and my 7 online credit card accounts flash this completely useless number on the computer screen because NONE of them are even remotely as low as the score printed on the report my mortgage broker has. Closest one is over 50 points higher and it's almost 100 points for the highest reported score.
So, how does that help me? It doesn't. Here I am, thinking ok, just have to keep the utilization low. Keep any charges to a minimum or prefereably zero. (I pay all my bills with my credit cards. Groceries, gas, entertainment, utilities. EVERYTHING except rent. When I get paid, billpay = rent check, and the rest distributed to all the credit cards. Lather, rinse, repeat. Good credit card usage. Only two of my cards have a balance. Actively monitor the (absolutely worthless) credit scores monthly, and here at CK weekly during this entire process. I COMPLETELY forgot to SUBTRACT 100 points from any and all credit scores I'm shown, because THAT is what your mortgage lender will receive! The score the broker was given is almost as poor as when my credit reports had the 5 collections and two credit cards at 95%+ utilization (one being that aforementioned $7,000 payment!).
I'm told to pay off all my credit cards, get balance letters, and they'll run an updated score. It will take 3-5 days. That was around the 20th of last month. Ok, November 1st, I pay $2600 down on the cards as instructed. Get balance letters faxed and/or e-mailed directly to the broker by November 3rd. They still haven't received an updated score to see if I 're-qualify' for the house I was trying to buy. (The close date was actually yesterday, the 20th). The bureau my broker is waiting for an update from has REFUSED to release a score as they are INVESTIGATING the 'excessive payments earlier this month'! WTF?
The best part. I just logged into all 7 credit card websites, EVERY SCORE IS HIGH ENOUGH TO QUALIFY FOR THE HOME LOAN I somehow do NOT qualify for as of last month. BOTH scores here, have been high enough to qualify for the loan SINCE I FIRST USED THIS SITE 18 months ago. But the score the mortage broker is shoving in my face... it's 51 points lower than TransUnion shows here, and almost 100 points lower than I'm told by another website.
Why? Because now I'll have to GO THROUGH THE ENTIRE PROCESS AGAIN, get charged higher interest, more fees, and ultimately, a lot more money. What can I do about it? NOT A GOD**** THING.
50% balance WILL hurt your score. Keep it 29% or lower. ALL THE TIME.
The collection agency is the one who TELLS the CB to remove a collection. I just had 5 collections removed from my credit report after discussing my situation with a bankruptcy lawyer this past summer. All 5 medical bills have been removed from all my reports, all 5 of which were from the same predators. Patient privacy my a$$... if they can't tell me when and a generalized why/what the bill is for, they can't tell me to fork over money to pay the bill! Well, they can, but they didn't get a dime.
Yeah, pay this Dave guy to tell you to not go into debt... wait a second... /wheels attempt to turn but rust and neglect deem this an impossibility. Yes, fork over some dough so a dude will tell you not to fork over some dough for stuff you don't need. wait a minute... /crickets Send me your next paycheck and I'll e-mail you advice on not sending people your paycheck, but only after your paycheck clears. What morons.
Because they are LYING. The entire financial industry is a SCAM. It was designed from the ground up to make the rich, richer and everyone else poorer. Everything from overdraft fees, ATM fees, transaction fees, late fees, over limit fees, customer service fees, check fees, annual fees, activation fees, cash back 'bonuses'... a 'bonus' when they're charging 2 to 100 times that in interest?
I do this for the majority of my credit cards. I get paid once a month. I use my credit cards to pay ALL my bills, including gas and groceries. I then PAY THEM OFF as soon as I get paid, making sure none of the bills paid are outside the specific card's grace period!
I'm not loaded, so I DO have a balance on a couple of my cards, but unless God comes along and wipes out everything I own, I get fired, and am forced at gunpoint to pay thousands of dollars at an ATM somewhere, these balances SHOULD remain relatively low and limited to the couple cards they're currently on.