Quote:
Originally Posted by birch3x
Wow, that's an ambitious claim. I think there are 2 distinctly different reasons for people to have poor credit and low bureau scores. It's 'lifestyle' vs 'event'. People withe a poor credit lifestyle are overextended, everything's financed, they get high rates and are always about 59 days late with everything. The phone is ringing with debt collectors, the mail is full of past dues, and they simply don't care. That's why the subprime market is so big. The people who have an event that causes their credit ratings to fall are people who were always on time or early with payments until something happened. Divorce, injury, job loss, etc. These people get back on their feet and get caught up. Okay, so that being said, I don't think the service will work because the reporting agencies wait for months to see if it's a lifestyle or event. Legal? Sure. It's probably just a way to lend more money. Ethical? No.
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Great post - I've been meaning to respond but I'm just now getting caught up.
I think you're 100% spot on with the way you categorize people who have poor credit and low bureau scores. The challenge is for the lenders (or BHPH Dealers) to figure out which category their customer falls into before they extend the loan.
I also agree with your assessment that the concept mentioned in this thread is probably legal but fails to pass the same standards concerning ethics or effectiveness. I really doubt it's that easy to "game" the three credit rating agencies and increase a customer's credit score.