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NPR-"renting ur credit" banks up in arms! - 6/15/2007 1:19:54 PM

pahunkboy

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NPR- had a report that the banks are quickly putting a stop to people who rent out their good credit.

What am I missing here? Somehow you add the name to your credit acount, then the fico score rises. anyhow the baks are raging mad- and intend to stop it.

How is this different then commodities? Insurance?

They won't disclose how fico works- in detail.

Even a law professor when asked to explain her credit card agreement was unable to.

Add to the "universal default"-- IMO unfair.

Incredible.

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 1:26:29 PM

popeye1250

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And just how does someone "rent out" their good credit?

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 1:34:29 PM

pahunkboy

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the good person adds the otehr to the account. from there- im not sure- but it boosts the fico score. the banks will stop it asap. im thinking after the new name is put on the original name is taaken off?? anyhow the sellers get $100 a pop on this tactic.

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 1:51:55 PM

GoddessDustyGold

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Only $100?

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 2:40:22 PM

mistoferin

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It often goes for far more than $100.

http://www.associatedcontent.com/article/267102/companies_renting_credit_card_accounts.html

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 2:44:26 PM

HaveRopeWillBind

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quote:

ORIGINAL: popeye1250

And just how does someone "rent out" their good credit?

Heard the same NPR report as PA. The person with excellent credit can add the one with questionable credit to their credit card as an "authorized user." Somehow the way FICO scores work this means that the one with the lower credit rating now gets a boost in credit score by becomming part of the good person's score. The person with the good score gets a $100 fee to keep the other person on as an authorized user for long enough for their score to raise. Then the person who previously had a low score can now go out and seek a home mortgage or other loan they had no hope of being apporoved for previously. It's basically a loophole in the system that was intended for family members but got abused. The banks plan to make changes to end the practice by January.

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 2:45:21 PM

eveningtwilight

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My mom did this for me when I was a teenager. She added me to her credit card, then kept me on it for maybe a year, then took her name off the card. I was left with her high credit limit - which in all honesty, I was not ready for at that age. Not saying the process is bad or should be stopped though.

I'm surprised banks are just now catching on and getting a bug up their butts about it. But on the flip side, I can see their point becaue I'm sure a lot of people who truly don't deserve a high limit (because they either don't have the income for it, or aren't mature enough to handle it) are defaulting on their accounts and the banks are left picking up the pieces.

Interesting to know this is happening. Thanks for sharring.

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 2:49:19 PM

kittinSol

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I don't understand it: the banks are amongst the sharkiest of businesses; their discourse is along the lines of 'all is fair in love and war' - anything goes; but they get pissed off because some individuals are showing some business acumen by selling their good credit records?

What's their problem, exactly? I thought they were all for free enterprise!

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 3:01:56 PM

popeye1250

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quote:

ORIGINAL: HaveRopeWillBind

quote:

ORIGINAL: popeye1250

And just how does someone "rent out" their good credit?

Heard the same NPR report as PA. The person with excellent credit can add the one with questionable credit to their credit card as an "authorized user." Somehow the way FICO scores work this means that the one with the lower credit rating now gets a boost in credit score by becomming part of the good person's score. The person with the good score gets a $100 fee to keep the other person on as an authorized user for long enough for their score to raise. Then the person who previously had a low score can now go out and seek a home mortgage or other loan they had no hope of being apporoved for previously. It's basically a loophole in the system that was intended for family members but got abused. The banks plan to make changes to end the practice by January.

By January? Well we better get to work quick then!

I found one of the companies that does it in the article. In that Minneapolis paper's article.
I have the phone number.
I have a fica score of 714 and a credit card with about $2,000 on it but a credit line of $6,000.
I wonder how much I can make?

< Message edited by popeye1250 -- 6/15/2007 3:26:49 PM >

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 3:30:57 PM

popeye1250

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And some of those crooked Banks are making 17% and more off of their cards but they want to stop the "man in the street" from "exploiting loopholes?"
Give me a fuckin' break!
I know guys from East Boston who don't charge that much on the vig!

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RE: NPR-"renting ur credit" banks up in arms! - 6/15/2007 7:09:41 PM

pahunkboy

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quote:

ORIGINAL: popeye1250

And some of those crooked Banks are making 17% and more off of their cards but they want to stop the "man in the street" from "exploiting loopholes?"
Give me a fuckin' break!
I know guys from East Boston who don't charge that much on the vig!

I completely agree with you Popeye!!!

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