[Christian]

What is everyone's opinion of credit boosting services? For instance, if a merchant was able to pay a fee and have their credit score (legally) boosted 50 points for 60 days would this be ethical. I imagine underwriters and broker may have different opinions on this. What do ya'll think?

[Lendvo]

Personally I think it is fine for a couple reasons:

1) We don't care about the headline score, we care about the actual report items themselves. IMO 35% of the time score is not representative of credit quality anyways. If your living and dying on the score your lazy and/or under-educated on the merchants in this space.

2) From my experience these services just help clear up minor collections issues and open up small secured and unsecured credit cards and credit lines. The same basic thing you'd find by googling how to boost your score.

3) If a merchant is actually taking the time, and even spending money, to increase their credit score it shows they care about their credit score and credit-worthiness. This is almost always a good thing to have in a merchant not a bad thing.

[jdlaw]

Personally I think it is fine for a couple reasons:

1) We don't care about the headline score, we care about the actual report items themselves. IMO 35% of the time score is not representative of credit quality anyways. If your living and dying on the score your lazy and/or under-educated on the merchants in this space.

2) From my experience these services just help clear up minor collections issues and open up small secured and unsecured credit cards and credit lines. The same basic thing you'd find by googling how to boost your score.

3) If a merchant is actually taking the time, and even spending money, to increase their credit score it shows they care about their credit score and credit-worthiness. This is almost always a good thing to have in a merchant not a bad thing.

This was done all the time back in the day when I was doing mortgages. The key is legally. The fact is most of the time, inquiries, misreported accounts, etc are knocked
out that results in a 50 point bump. Of course if the credit fixer is really skilled, you can get third party collection accounts removed through validation (most don't have the
records required to support the collection activity.) but they will be readded when they roll the quarterly tape

[Karen37a]

This was done all the time back in the day when I was doing mortgages. The key is legally. The fact is most of the time, inquiries, misreported accounts, etc are knocked
out that results in a 50 point bump. Of course if the credit fixer is really skilled, you can get third party collection accounts removed through validation (most don't have the
records required to support the collection activity.) but they will be readded when they roll the quarterly tape

this is correct

and the medical bills are challenged based on the hippa act and privacy.

Rapid rescore is the term they use for Bank Loans and mortgages.

Most people who have been in the industry awhile can glance over a credit report without a score and guess what the credit score will be.

This is also why it's dangerous putting too structured thinkers in charge of underwriting because sometimes they pick the wrong files. They choose to fund the Restaurant guy with the 750 credit score who has no people skills and the food is marginal at best; while I will choose Vito the pizza guy with the lower score who is flipping pies like a showman who has the best pizza and sauce in town.

Vito is still going doubled his revenue the other 750 guy is under defaulted , blaming the financing costs as the reason for his demise

My credit score was down to 400 something during my florida debacle...798 now,,, some people bet on the wrong horse again

[Christian]

Personally I think it is fine for a couple reasons:

1) We don't care about the headline score, we care about the actual report items themselves. IMO 35% of the time score is not representative of credit quality anyways. If your living and dying on the score your lazy and/or under-educated on the merchants in this space.

2) From my experience these services just help clear up minor collections issues and open up small secured and unsecured credit cards and credit lines. The same basic thing you'd find by googling how to boost your score.

3) If a merchant is actually taking the time, and even spending money, to increase their credit score it shows they care about their credit score and credit-worthiness. This is almost always a good thing to have in a merchant not a bad thing.

1) Just because I start a thread about credit doesn't mean I'm living and dying on it. But in some cases it can make the difference needed to get the deal closed. And I choose to have as many arrows in my quiver as possible.
2) If that's your experience then frankly, you lack experience. There is more that can be done, for instance... adding seasoned trade lines can make an immediate significant difference.
3) Good point.

[abfunders]

Patrick @ Lendvo is right.... if they care enough to go through boosting, they care about things more. And they'll less likely let it happen twice. They learn about how to maintain good credit, and they'll enjoy the benefits of better credit moving forward.

Just don't take them to the bank they defaulted on for a credit card.... the bank's internal records still have them on file, even 7-10 years later after it's not showing up on the credit report.

The funny part was my client who defaulted student loans.... then when she wanted more funding after a few months, her credit showed a charge-off/default with LoanMe. She told me, "Okay, get me a loan now, and I will work on my credit." I didn't tell her, but I wanted to say, "You have to work on paying back your loans!"

To add Authorized User cards to "boost your score for a loan" I read once is officially fraud.... but there's no way to control or stop it, and they don't go after anyone who does it, so I'm not sure that there's a place to be concerned about ethics. You can call it illegal as long as you want, but it's just not enforced by anyone, so you can't call that a legit law. And it definitely works for some lenders (the non-bank real estate people) and funders (many quick-to-the-draw MCA funders) who care nothing other than the score (and the FICO and the VantageScore are completely different metrics, a sub-500 will be different for each...)

[ADiamond]

What is everyone's opinion of credit boosting services? For instance, if a merchant was able to pay a fee and have their credit score (legally) boosted 50 points for 60 days would this be ethical. I imagine underwriters and broker may have different opinions on this. What do ya'll think?

Anyone have experience with removing student loan trade lines? My sister had two student loans from about 7 years ago that were originally financed by Chase, I believe - for a govn't agency (dont know which) - one was subsidized, the other not. Anyway, they went into forbearance but then default, went to collections, then sold off to a debt buyer.

I heard that you can challenge them and as someone above stated - chances are they don't have the proper documentation after going through so many offices - but what exactly is she challenging? what are the proper channels to go through here? actually go through a 3rd party credit repair, or?

If so, any recommendations ?

[Karen37a]

There is a difference between credit "boosting" and making a clear attempt at fixing your finances, credit score and your life.

A "boost" is a fake move manipulating the credit algorithms for a short time ...7-10 days as it goes thru the back-end electronic credit systems.

If you know how to boost credit you can also see the boost when doing underwriting ...most do not know how to do it.

This is why top notch underwriting looks at the credit and what is on it...student loans vs defaulted credit card debt

[Karen37a]

Anyone have experience with removing student loan trade lines? My sister had two student loans from about 7 years ago that were originally financed by Chase, I believe - for a govn't agency (dont know which) - one was subsidized, the other not. Anyway, they went into forbearance but then default, went to collections, then sold off to a debt buyer.

I heard that you can challenge them and as someone above stated - chances are they don't have the proper documentation after going through so many offices - but what exactly is she challenging? what are the proper channels to go through here? actually go through a 3rd party credit repair, or?

If so, any recommendations ?

Student Loans are the one thing that is almost impossible to fix. Send me your info in pm and I will send you info on the only way to lessen the blow to the algorithms

[Christian]

Patrick @ Lendvo is right.... if they care enough to go through boosting, they care about things more. And they'll less likely let it happen twice. They learn about how to maintain good credit, and they'll enjoy the benefits of better credit moving forward.

Just don't take them to the bank they defaulted on for a credit card.... the bank's internal records still have them on file, even 7-10 years later after it's not showing up on the credit report.

The funny part was my client who defaulted student loans.... then when she wanted more funding after a few months, her credit showed a charge-off/default with LoanMe. She told me, "Okay, get me a loan now, and I will work on my credit." I didn't tell her, but I wanted to say, "You have to work on paying back your loans!"

To add Authorized User cards to "boost your score for a loan" I read once is officially fraud.... but there's no way to control or stop it, and they don't go after anyone who does it, so I'm not sure that there's a place to be concerned about ethics. You can call it illegal as long as you want, but it's just not enforced by anyone, so you can't call that a legit law. And it definitely works for some lenders (the non-bank real estate people) and funders (many quick-to-the-draw MCA funders) who care nothing other than the score (and the FICO and the VantageScore are completely different metrics, a sub-500 will be different for each...)

It's not fraud for two reasons. The reason it still works is because the law states that anyone who has access to the credit shall get the benefit of the trade line history. Moreover, it is not considered fraud because the fact that it is just an authorized user and not account holder is (legally required to be) disclosed on the report, so there is not concealing of the fact. And it works quite well.

[Karen37a]

It's not fraud for two reasons. The reason it still works is that the law states that anyone who has access to the credit shall get the benefit of the trade line history. Moreover, it is not considered fraud because the fact that it is just an authorized user and not account holder is (legally required to be) disclosed on the report, so there is not concealing of the fact. And it works quite well.

Some lenders take the authorized user out of the equation and use their own proprietary scoring model...back in the 90s up to the housing bust people were buying authorized users status from people who had 30 years of credit 80k tradelines etc

[abfunders]

Reason #1 doesn't apply since these clients get AU cards and never get sent to them, and they don't have access to the credit line.

[WestCoastFunding]

Some lenders take the authorized user out of the equation and use their own proprietary scoring model...back in the 90s up to the housing bust people were buying authorized users status from people who had 30 years of credit 80k tradelines etc

Karen, I’m going to need you to knock it off. I’m not saying this about anything you’ve done today so far. I’m proactively and preemptively getting it out of the way for whatever you do later.

[Christian]

Some lenders take the authorized user out of the equation and use their own proprietary scoring model...back in the 90s up to the housing bust people were buying authorized users status from people who had 30 years of credit 80k tradelines etc

This still exists. Hence the reason for this thread.

[Karen37a]

Karen, I’m going to need you to knock it off. I’m not saying this about anything you’ve done today so far. I’m proactively and preemptively getting it out of the way for whatever you do later.

lol

[Christian]

Reason #1 doesn't apply since these clients get AU cards and never get sent to them, and they don't have access to the credit line.

It DOES apply because their credit score jumps. But I see your perspective.

[Karen37a]

Reason #1 doesn't apply since these clients get AU cards and never get sent to them, and they don't have access to the credit line.

this isn't true the person can hand the other person a credit card ( with their name on it) so they have access to it

Add

People can also report their rent payments to their credit thru numerous companies Like rent track and rent reports. Some of these report to all 3 some only one

Also, I heard of"self-lender" which is a company that lets you pay yourself back the money they gave you and put into a Cd or secured account.

The reality is we either consider our selves "consultant like" or not. Helping people fix themselves is the reason I hold a low default ratio.

[Lendvo]

lol, you've probably got me on #2 a little, I don't know all the tricks that credit boosting services do. Never delved too deeply into it. That said it is our practice to discount fresh accounts in our UW methodology.

[Karen37a]

I have 4/5 defaults and over 90% renewal ratio...and it isn't because I cheated to boost credit

I helped people fix themselves ( get their taxes in, pay off debt, expand, double triple revenue and cash flow) so they had hope and a viable profitable business

Selling on dropping rates , thru a black box computer algorithm model, does nothing to help people long term..it is a bunch of bs

[Christian]

I have 4/5 defaults and over 90% renewal ratio...and it isn't because I cheated to boost credit

I helped people fix themselves ( get their taxes in, pay off debt, expand, double triple revenue and cash flow) so they had hope and a viable profitable business

Selling on dropping rates , thru a black box computer algorithm model, does nothing to help people long term..it is a bunch of bs

And 4 out 5 times it works all the time

-RB

[mbernier]

If you need to speak with a credit service specialist, I suggest reaching out to Aaron Crouter with Venture Credit Solutions. He has helped a ton of my broker's clients and the comp plan for referring clients to Venture is pretty good.

Aaron Crouter
Head of Business Development | Venture Credit Solutions
P: 347.566.9891 | C: 407.924.1724

[FCF Fund]

This still exists. Hence the reason for this thread.

Christian, I Pm'd you a source I've used.

[FCF Fund]

And 4 out 5 times it works all the time

-RB

I hear it works 60% of the time, every time