Frustrated with FICO Scores

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Posted by Tamia (VA) on May 06, 2008 at 09:12:11:

I have been investing in real estate for 9 years.

And I'm becoming more and more frustrated with my credit score.

I have 6 mortgages on my credit report and use my personal credit cards to finance repairs for the properties. I understand that the higher your credit card balance, the lower your score....

What I don't understand is...how are other real estate investors keeping their credit scores up when they have multiple mortgages on their credit report and use their credit cards for repairs???

Someone please enlighten me.

My middle score is a 640...and due to the mortgage industry crisis, I am finding it harder and harder to get financing for real estate investing...(we are Class A contractors who fix up properties, refinance and rent them out...even with "hard money lenders!"

Many hard money lenders want a credit score of 660 or better.

This is so frustrating...I'm trying to make a career out of real estate investing, but I am so tired of worring about what my credit score is....it changes almost everyday!

I don't think it is fair that a person's WHOLE world is based on a score...and no one is quite sure how it is calculated....people think they know but is not sure. The FICO score's calculation is privately protected....that means that a family somewhere in the world owns the FICO score calculation. I wonder who it is...and do you know how much POWER those people have? Are credit scores really fair?

And why is it acceptable that you can PAY for your credit score (like on TRUECREDIT.COM) but when other people pull your score, it is completely different? If you PAY for your score, they should provide you will all possible scenerios.

After doing some research I learned that the score that TRUECREDIT.COM gives you is NOT a FICO score...you can only get that from myfico.com after paying about $50. And I just learned that different lenders can request different scoring models that can weigh things like mortgages more heavier than other scoring models....

Am I the only one frustrated with the way the credit score system works? It seems to me, it's just another way to weed people out from the American dream....

I don't mind working hard to achieve my dreams...I'm just tired of the dream always moving.

I'm sure other real estate investors are monitoring their scores on a regular basis as I do....please respond if you do...and tell me what you are doing to keep your sanity.



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