I have many clients who are doing what they can to raise their credit score so that they qualify for a purchase money loan. I am surprised many times when I see a lower score with perhaps only one minor derogatory account. In that case the only way to raise the score is to let time pass.
Yesterday I was blown away the other way. My client has a mid score of 646 and has had THREE foreclosures the past two years. This client has had as many delinquent accounts the past two years as current accounts. Of course I am happy for the client but have to wonder about the unfairness of this scoring system.
Yes, I have attended all of the classes and know how the system works or is supposed to work. It still does not make sense to me that paying an old debt actually lowers the score. I studied credit analysis years ago and am convinced that the entire credit scoring system is flawed.
Doug Jones
Mortgage Magic
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