Question Mr. Garcia - Posted by Edmund Palmeri

Posted by Ed Garcia on October 01, 2001 at 10:21:04:

Mr. Palmeri,

I’m not an expert on credit scores because I really don’t have much regard for them. As for me they are a necessary evil. The reason for my attitude is, the accuracy of the system and the way it derives the information is questionable, and yet it is a major part of loan determination.

I have seen borrowers who were not credit worthy have a respectable score, and borrowers who were excellent borrowers with long-term jobs, home owner for 5 years or more, no derogs, and able to debt service have a marginal score. There is definitely something wrong with that picture.

The score has it most value at the time you are borrowing. Because it is subject to change, and change quickly, there is no time frame on how long you must have the score.

Ed Garcia

Question Mr. Garcia - Posted by Edmund Palmeri

Posted by Edmund Palmeri on October 01, 2001 at 02:54:30:

I applied for a couple bank loans a month or 2 ago which is what Carleton Sheets advises in his course. I previously did not have a credit score. Now my score is 784. Question, Do Lenders care more about the score or the LENGTH of time u have had that score. I am told 784 is very high. Is it rare to get a score that high right off the bat?

Re: Question Mr. Garcia - Posted by Bruce Lawson

Posted by Bruce Lawson on October 02, 2001 at 13:16:39:

Hi Edmund,

Lenders do not care how long your score has been 784 they DO like it being that high,that score will change as you make changes in your life, the scoring system is terrible but unfortunately is a big part of real estate investing.

There are many factors that are involved in your credit score calculation such as; The length on your job,the length at your residence,how mwny open financial accounts you have, Debt to Income ratio, how much you earn from your job and how you pay your bills all of these and more all play a role in your score.

Certain activities will bring your score down a big one among REI’s is inquiries every time someone looks at your credit profile to grant you money your score will lose five points,those inquiries will remain on your credit reports for two years but are only counted against your score for 90 days.


Bruce Lawson