Why Bad things are Happening to Good People with Credit
2005 The year good People got Screwed
It been happening for a while in fact since 2005 to be exact, many peo-ple have found their credit scores drop from being very good to be sub-prime! This not because they are not paying their bills on time, it is not because they went on a spending spree and ran up their credit card balances.
The credit act of 2005 allowed banks and credit card companies to just make changes at will!
You are their target!
Many good peple who always protected their credit and never over spent and always pay their bills on time are now seeing they cannot even refinance their mortgages to take advantage of the lowest rates in US history.
Here’s how it works out!
You have a credit line on a credit card of $5,000.00 you never speand more then 20% of the limit. This use to be the zone 20-30% of your limit kept your score high.
Now when you do this or you pay off your balance every month the banks were not making any money off of you in fact you are one of those great people who the banks hate.
Now so you only have a 20-30% balance to limit or loan to value the bank came along and reduced your credit line to $2,500 from $5,000.
Now you go from a 20% loan to value to 40-50% and your score automatically drops 60 points, so you once had a 720 or better score you now and just from one card 660 and you are border line even being considered for a new mortgage.
Think and look before you use the card again because it might just screw you in the end. Until the FICO scoring system is updated and the banks stablize the credit market and do not just drop limits more people will be hurt.
The government needs to look at how credit is being scored today and make a major change ir the current mortgage melt doen and rea estate recovery will never get fixed.
To see what you can do to protect your credit or to apply for a new loan for your new home or refinance your exsisting loan in New Jersey just apply here
Thinking of looking for a New home we have your source don’t pay site to look for home just go to the Better Homes website and find the perfect home for you