A Credit Repair Service That Is Somewhat Disturbing
As if the mortgage industry hasn"t had enough problems lately with the sub prime loan bust that is affecting every loan currently that is being written for all types of mortgages, they are also facing another disaster in the making that is being seen by certain credit repair services.As it has been reported over and over again on the news, the mortgage industry has taken a hard hit because of the loans that were written for those people with less than perfect credit. A high number of those sub prime loans defaulted which caused the lending industry to have to make up their losses by charging enormous rates on all the loans that are now written for home loans and also causing for more stern requirements to be met by those wanting to buy a home.
A person that has a poor credit score is going to find it harder than ever to finance a home now. There seems to be some disturbing credit repair services on the Internet that are making those that have a poor credit score get a higher rate overnight, which in return is allowing people that might not have met the new requirements for a home loan today possible to meet them tomorrow. You might be questioning how this is working and the truth might disturb you a little. These credit repair services are literally buying good credit scores from people and then taking those that pay for their service that have bad credit and putting their name on the accounts on the person with good credit. Believe it or not, whether you are related to someone or not, if you are listed on their account and they have a good credit score, their credit score will automatically boost yours should it be piggybacked on any of their accounts.
The idea is somewhat haunting yet somewhat brilliant at the same time, but not suggested for consumers to look into because this particular kind of credit repair is raising some eyebrows. The sad truth is that these people who have very poor credit scores and are raising their credit scores overnight may further hurt the loan industry if they begin to default on their loans in magnitude like has been seen recently with sub prime loans.
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