The economy is debt based. You get rewarded for having loans and paying on time. It’s weird but that’s the system here.
FICO Changes Could Lower Your Credit Score
- Thread starter ☑︎#VoteDemocrat
- Start date
Can you go into more detail how refinancing your home for a credit line works?
You get a loan to put down a downpayment on another loan/mortgage?
Do you owe more on the original house mortgage when you take a line of credit out?
LeVraiPapi
Redemption is Coming
The line of credit is for my businesses.
The equity ob my home is close to 100k. Due to my scores, I can refinance and get a better rate anf take the difference from the value of the home now versus what I owe to the bank. That difference will be invested into real estate. Then once I earn equity on those 2 condos, rinse and repeat or just sell them.
Ultimately, this seems like some good ol' goalpost moving for people on the lower end of the credit scale.
It's not a coincidence that a good portion of the people who benefitted from utilities counting for credit are also likely to be negatively affected by this.
Also doesn't hurt them that this will keep people from flipping personal loans into credit boost shortcuts.
It's not a coincidence that a good portion of the people who benefitted from utilities counting for credit are also likely to be negatively affected by this.
Also doesn't hurt them that this will keep people from flipping personal loans into credit boost shortcuts.
CACarot
Where is Princess Fajita
We need some kind of FICO credit reform. This shyt is starting to get ugly and necessarily complex. For a top notch score you need long credit history, loans from various different entities, on time payments, unused balances, now certain amount of cash in the bank. An this may only reflect in one of the various types of credit scores organizations can pull. It really shouldn't be that complicated. Look at your income to expenses and see how affordable what you buying is, and factor in to a degree personal history of on time payments. All of this is just to set people up for highest interest rates and economic poverty. Control the system and you determine the outcomes. I mean insurance companies are now using credit scores to determine your premiums. These things just continue to hurt the working class.
Would you recommend getting a large condo for 300K sit on it for a couple years then refinance then move out of it to rent it out OR get a small house for 100K and save for a large downpayment for the large condo as a rental property?
Yeah, I paid mine off and nothing at all. I could have invested that money.,, that shyt is a joke anyway,,,I remember I paid my car off early and that shyt dropped about 20 points
Lord_nikon
Veteran
wait till they reveal that its just black people will get low scores
That’s some bullshyt lmaoo
I paid my shyt off 3 years early and my shyt only budged 5 pts
LeVraiPapi
Redemption is Coming
I would say get a triplex or a bigger house. Rent 75% of it and leave in the rest. Thats if you can divide it properly with city permit of course.
Last option sounds smarter. Get a small house and get 1 or 2 condos you can rent or do Air BNb on to pay the mrtgage. I would not buy a big condo to live in and hope it goes up in values. Unless you find a true bargain.
Breh, there is a big difference. Trust me on that.
When I got my first car, there was an old guy with an 800+ score that walked in. Put no money down and drove off with the same year model at a 1.4% rate.
It's all about how you negotiate. You are on point about the mortgage too. That's my next move. I owe 264k on 395k home now. I been getting calls and letters and emails to refinance. EVerybody got a shot except for BoA. I will never forget when they said I qualified for 85k to buy a home.
I think lowkey that motivated me
BOA is demonic, I’ve always hated them.
Contrefaire
Superstar
Oh okay, a new, potentially even worse recession is about to hit and they see the writing on the wall. Got it.
That being said, there's no reason why in 2020 credit scoring remains such a mystery to the majority of the population. And it's not due to plain ignorance or lack of trying to understand either. You can have a stable income, low debt/credit utilization + 100% on-time payments and your score can still randomly drop 30+ points out of nowhere. And good luck finding out why.
The shyt is straight rigged.
That being said, there's no reason why in 2020 credit scoring remains such a mystery to the majority of the population. And it's not due to plain ignorance or lack of trying to understand either. You can have a stable income, low debt/credit utilization + 100% on-time payments and your score can still randomly drop 30+ points out of nowhere. And good luck finding out why.
The shyt is straight rigged.
Software
RIP Future Gohan
Thisthe average person can do it. My cars are old. Over a decade old. Took my car to service the other day and the manager gave me a brand new SUV to drive for 1 month so he could get me in the door. I returned the car on a weekend after hours :
He called me and I told him my cars run fine and still looks clean so no need to change that now. I lived very modestly so I could make sure I don't increase my debt. It's doable once you stop living for clout and for people.
Meanwhile one of my neighbors go on 2 trips a year while he can barely keep up his mortgage premium and own a brand new BMW 750
The average person gets sucked into the magazine life too easily.
