Read it here first: Borrowing FICO Scores


Back in April, we discussed the unusual lending-related practice of "borrowing" someone else’s credit-worthiness. (Go FICO Yourself: Selling Your Credit Score).

Now, the mainstream media has finally gotten around to discovering this less-than-savory part of the lending laws.

Here’s a quick excerpt:

"Only a low credit score stood between Alipio Estruch and a mortgage to buy a
$449,000 Spanish-style house in Weston, Fla., a few miles west of Fort

Instead of spending several years repairing his credit rating, which he said
was marred by two forgotten cell phone bills and identity theft, the 37-year-old
real estate agent paid $1,800 to an Internet-based company to bump up his score
almost overnight.

The result was a happy ending for Estruch, but the growing practice is
sending shivers through the mortgage industry. Federal regulators are also
reviewing the practice. And after being contacted by The Associated Press for
this story, Fair Isaac Corp., the developer of the widely used FICO score, said
it will change its credit scoring system beginning later this year in a way it
contends will end this little-known but potentially high-impact mortgage loan
loophole., or ICB, helped Estruch boost his score by
arranging for him to be added as an authorized user on several credit cards of
people with stellar credit who were paid to allow this coattailing. Parents also
use this practice when they add their children to their credit cards to help
them build solid credit.

The pitch to those who are essentially renting their credit history for pay
is seductive: You don’t need to worry about users of this service receiving
duplicate copies of your credit cards, account numbers or any of your personal
information. It’s essentially free money, they are told."

The entire article is worth the read . . .


‘Piggybacking’ Roils Credit Industry
J.W. Elphinstone
AP, Sunday June 3, 6:57 pm ET

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