Well, maybe the headline is a bit too harsh. However, the debate is real. There has been some lively discussion over at The Phoenix Real Estate Guy blog post titled “Buying a Higher FICO Score?!?“. This is the post with the thread. I suggest reading through, there are some really insightful comments.
I commented on this as well, but in my own posting yesterday I didn’t make much of Fair Isaac changing their rules for authorized users. When I first discovered how people could become authorized users on a good credit account to increase their scores I likened it to all the different tax breaks and deductions the IRS offers and how some companies re-locate to offshore destinations to avoid paying taxes. Is this fraud? It’s a loophole. I put the onus on the rule maker to change the loophole.
However, many disagree. Butterworth has some thing to say, and so does Blown Mortgage.
Our own local paper has as story on this from the AP.
Welcome to the Arizona Mortgage Guru blog, a great resource for all your home financing needs. If you're new here and like the content, you can subscribe to my RSS feed to get regular updates on all things related to mortgages. Thanks for visiting.
Credit scoring method changed for authorized users
Zillow under fire from Realtors
You owe taxes if your creditor forgives a loan!
Related posts brought to you by Yet Another Related Posts Plugin.
on Jun 8th, 2007 at 9:22 am
I tell ya - I just can’t put my finger on the exact thing about this situation that bugs me. It seems like it should be okay - all parties are willing, hopefully informed, and I suppose it could be a loophole vice fraud.
But it just stinks of dirty business…
on Jun 8th, 2007 at 12:12 pm
April,
I think I know where you’re coming from. There is something about it that just isn’t right, but at the same time not sure what.
Thanks for visiting!
Shailesh
on Jul 9th, 2007 at 12:41 pm
[...] know the FICO scoring model no longer allows the use of authorized user accounts to boost credit scores. However, there are lots of credit [...]