Thoughts and Riches

.....a blog about personal finance, motivational stories, deals, and special offers

Books

Web Domain Registration

Thursday, June 07, 2007

Renting good credit history for money

The AP/Yahoo Finance article discusses how certain credit repair agencies have been adding consumers with bad credit history as authorized users of those with good credit history to improve the scores of consumers with bad credit history in return for money. Some people with good credit history have been making money as much as $2,500 per month using this practice, while at the same time, consumer with bad credit history gets to have better credit history which in turn could lower their borrowing costs. Who's the loser in this game - the lenders who may end losing money due to greater default risks.

The practices seems to have become so widespread that it has gained the attention of mortgage industry and regulators. In response, Fair Isaac Corp., the developer of the FICO score, is planning to change its credit scoring system.

For complete article, check out:

AP/Yahoo Finance.com: 'Piggybacking' Roils Credit Industry

For related article, check out:

AP/Yahoo/Fool.com: Need Good Credit? Borrow Mine!

posted by Ruby @ 8:00 AM

0 Comments:

Post a Comment

<< Home

See important Disclosure and Disclaimer

Favorite Quote

"If you look at what you have in life, you will always have more. If you look at what you do not have in life, you will never have enough".
- Author Unknown

Disclosure

This site uses cookies from companies like Google and others to enable the companies to deliver their services, personalize their ads and product offerings, and for traffic analysis. Information about your use of this site is shared with these companies. By using this site, you agree to its use of cookies. Additionally, this site, including blog posts, may contain reviews, links, banners, text and other forms of advertisements for products, services, courses, and so forth of companies of which we may be an affiliate member or for which we may get paid for referrals. This site may also contain blog posts for which we are paid, as well as blog posts regarding products or services of companies from which we may have received complimentary products or services.

Reward Surveys/Panels/Shopping/Contests