Results 1 to 6 of 6

Thread: Want to buy a better credit score ?

  1. #1
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Want to buy a better credit score ?

    Just when I thought that I had heard everything re lenders squeezing fees from subprime credit card holders ...



    (snip)"The companies claim to raise FICO credit scores by 50 to 250 points by adding low-scoring borrowers as "authorized users" on the credit card accounts of people with FICO scores well in excess of 700. The positive payment information from such cardholders then flows into the files of the persons with subpar credit.

    Federal law permits authorized users to be added to credit card accounts. Typically the users are relatives or friends of the primary cardholder. For example, a parent might add a son or daughter onto a Visa card in order to provide access to credit for the child or for use in emergencies.

    Federal law, however, does not limit the number or prescribe the type of authorized users permitted on any single account. Nor does it prohibit the rental or sale of authorized user designations. Exploiting that loophole, numerous companies have popped up on the Internet offering to buy and rent out the credit card "trade lines" or accounts of credit card holders with high limits combined with perfect payment histories.

    Big bucks -- and a strong potential for fraud on mortgage applications -- are involved. Some website promoters say they can add 80 to 120 authorized users onto a high-quality credit card account before banks or lenders get suspicious. Each account can rent for as much as $1,500 to $2,000 for a 180-day usage. The primary credit card holder receives a cut of the rental fee, often hundreds of dollars for each authorized user added to the account.

    The person seeking a higher credit score does not obtain actual access to the credit card. But within 30 to 90 days of being added to the account, the national credit bureaus incorporate the primary cardholder's ongoing account information into the files of the authorized user. The score-raising attributes of the primary cardholder's stellar payment record then flow through to the new user.

    One company based in Tampa, Fla., recently solicited mortgage brokers promising FICO score boosts of 150 to 205 points for applicants "in as little as 30 days" for the "discounted" price of $750 per trade line.

    That widely distributed pitch prompted one state financial regulator to issue a "fraud alert" warning that "consumers, brokers and lenders that complete, submit or participate in the completion and submission of an application for credit that contains misrepresentations or false information are subject to administrative actions and potential criminal penalties by the state."(snip)


    Now THIS sounds like an internet based business that could actually be profitable for 'small-timers' .... where do I sign up ??? I could definitely handle a $500 'cut' from each of 100 authorized users the internet bank wants to add to my credit card account.

  2. #2
    Featured Member lunchbox's Avatar
    Joined
    Sep 2005
    Location
    falling from grace
    Posts
    1,943
    Thanks
    0
    Thanked 8 Times in 6 Posts

    Default Re: Want to buy a better credit score ?

    I read a similair article this morning. My fit thought was how do you prevent them from spending on the card?

  3. #3
    God/dess Bridgette's Avatar
    Joined
    Apr 2002
    Location
    Gettin the fuck outta Dodge!
    Posts
    14,241
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Want to buy a better credit score ?

    Well, they don't get a card and they don't get the account number, obviously. When I check my credit reports I don't see the full account numbers, just partial ones.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

  4. #4
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Want to buy a better credit score ?

    ^^^ under the present system of credit reporting, no. However, the powers that be in the financial industry are now becoming aware of this 'sleight of hand' trick, and will probably make changes in the reporting / rating procedures as a result.

  5. #5
    God/dess Bridgette's Avatar
    Joined
    Apr 2002
    Location
    Gettin the fuck outta Dodge!
    Posts
    14,241
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Want to buy a better credit score ?

    ^It would only work in reverse if say, someone with a really good score got added as a user on a bad account

    The way this works is that someone with crappy credit gets a really good account added to their file. It doesn't affect the original owner of the good account.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

  6. #6
    Featured Member Vamp's Avatar
    Joined
    Jul 2004
    Location
    Missouri
    Posts
    1,111
    Thanks
    271
    Thanked 757 Times in 289 Posts

    Default Re: Want to buy a better credit score ?

    This is a scam for several reasons.

    One being an authorized user on a credit card account does not effect your credit score. Authorized users do not have any responsiblity on an account. It will show on the authorized users credit report BUT included with the entry is a code that shows they do not have any liablity on that account. There are some lenders that misread the credit reports but because the raw credit score is calculated by a computer system it would not effect the score itself.

    Two there are limitations on the number of authorized users someone can have on a account. It varies depending on the financial institution one goes to.
    Nature knows no indecencies; man invents them. ~ Mark Twain


Similar Threads

  1. Replies: 6
    Last Post: 01-28-2009, 04:10 AM
  2. What's your credit score?
    By CarlyMIA in forum Dollar Den
    Replies: 41
    Last Post: 10-23-2008, 05:35 PM
  3. I got an F on my credit score...help?!
    By Sophia_Ashley in forum Dollar Den
    Replies: 36
    Last Post: 06-09-2008, 11:32 PM
  4. Replies: 16
    Last Post: 04-10-2008, 01:09 PM
  5. Credit score
    By Muyaha in forum Dollar Den
    Replies: 11
    Last Post: 06-23-2004, 12:42 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •