8 credit score myths debunked
Misconceptions abound when it comes to the ways credit scores are determined. Here are some of the more egregious falsehoods surrounding the process.
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Fact: Credit Score methodologies aren't transparent for a reason
Myth: There are credit score myths
Fact: The writer doesn't know for a fact what's true or not, he is just writing what he is told.
While a foreclosure and a short sale will both impact your credit score, a short sale will allow you to qualify for FHA financing to buy another home immediately following the short sale if you don't miss any mortgage payments in the process. With a foreclosure you will have to wait at least 36 months and in some cases 60 months before being able to purchase another home. I think this is an important piece of information that is left out in this article.
Plus, settling a debt for less than what is owed via a short sale is much better for your score than just letting the debt get charged off through foreclosure. We've seen short sales only bring down a credit score by 100 points whereas a foreclosure has dropped the score by more than 200.
In conclusion, this writer did poor research and has left the public more stupid than before reading this pointless article.
Credit bureaus are practically untouchable, you can probably get a hold of the US President faster than you can talk to them. When you get your credit from either Equifax, Trans Union and Experien they give you a number to cal that expires withing 30 days and most of the times 99% when you call they do not correct any issues with your score or erroneous entries on your report until 30 days later which then you have to request another updated credit report and if there is still wrong information on it you have to start all over again.
Who watches the watchers and to whom do they report who is their boss and how can you get a hold of them ? . Credit bureaus do not have an office that you can go to and speak to someone in person, for Gods sake I can go to my Congressman's office or to the Senators office easier than speaking to a live person from any of the credit bureaus. They should have field offices that you can go and try correcting report issues with the assistance of someone in person. Well good luck to all os you out there with credit issues , you are not alone.
They missed the biggest myth of all:
You must have a credit score or you cannot live.
Live on less than you make, do not have credit cards and do not take out personal loans. You will have a 0 credit score; but with a little proper documentation, you will qualify for a premium mortgage through a process called manual underwriting. The poor MBA grads of today don't even know what that is...I cherish my 0 FICO! It took some work, but I am proud of this achievement.
I am one who uses credit scores to evaluate people who want to rent my apartment units. Everyone will tell you that they can pay so the use of a credit score is valuable to me. I have found that occasionally there are conditions that make weak credit scores that the applicant has no power over.
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