|
Jeff Strickland wrote:
> "$cott" <ezmortgageloanz@aol.com> wrote in message
> news:1145432026.203319.84670@u72g2000cwu.googlegroups.com...
> >> It is odd that you are so poor and have such a good FICO score.
> >
> > Income and assets are not used to calculate credit scores, timely
> > payments and low balances do.
> >
>
> I know that, but as a general rule, people with low incomes also have low
> FICO scores. Obviously, this rule of thumb isn't set in stone. The idea is
> that life costs money, and if one hasn't got the cash, they use credit.
> Excessive credit drives scores down. Certainly, one can go through life
> without using credit, or using credit well, and this is reflected in high
> scores without regard to the income.
IMHO, the whole credit monitoring industry is flawed for the same
reasons I mentioned; FICOs have no attachment to income and assets.
Case in point happened to me last week with a buyer that earned 600K a
year, but he had maxed out his credit cards to the tune of 50K. His
debt to income was in line, but he had a bad credit score because he
had borrowed beyond the 70% of available credit on his CCs. Because
income and assets have nothing to do with determining the score, the
credit bureau's solution would be to pay off or bring the CC debt down
to a 70% level. I had similar case earlier on in my career and I
handled in a text book fashion (Mr. Customer we need to pay this and
cancel that...) and lost my client because he was insulted that I'd
make these suggestions. What did I do with my 600K client last week?
I told him the "credit system is flawed because income and assets"
story, asked him not to shoot the messenger, got him to pay some of his
debt off and closed the deal.
Regards,
Scott Miller
National Commercial and Residential Lender/Broker
1.877.716.6495
EZMortgageLoanz@aol.com
www.RealEstate-IQ.com
www.EZMortgageLoanz.com
|
|
Re: Ping or Calling Jeff Strickland Please Help
