While I was waiting for Blogger to come around, I was reading the business section of Yahoo and ran into this article about a guy who wanted to buy a house in Florida, but had a credit problem. It seems he hadn't paid some bills and had a bad FICO score.
For those of you who don't know, your FICO score runs from around 350 to 850 and determines if you get a loan and what the interest rate will be if you get it. Judy and I hit over 800. It's true. We pay the bills on time. Plain and simple. FICO is a concept that came from a company called Fair Issac, as you can read in the article. In fact you can read almost everything factual in the article, except what I have to say.
Evidently, there are now sites on the internet where you can "buy" a "spot" on someone's credit card that has a rating like mine and in a month magically transform your FICO rating from crap to excellence. The example in the article is a guy who in a month bought a half million dollar house in Florida that he didn't originally qualify for. The other example is the guy who quit work because he receives $2500 a month in income from renting out 19 "spots" on his credit cards each month. A cottage industry has broken out.
No, I don't think I will do this as a renter of spots on my credit cards. I noticed that Fair Issacs would be making changes. Also, I can't imagine that this loophole will be left open, and I don't want to get caught in the door later on. Just cautious.