zzrmark

Completely messed up!
Six months ago I couldn't co-sign on our mortgage because I hadn't been a LPR for more than two years (probably doesn't apply to standard mortgages but took advantage of a low rate package that requires one applicant to be in certain types of gov't employment)

Pulaski

Not flawed, it's just that credit scores have a limited purpose, and so they are commonly misunderstood.

It is easy for banks and lenders to obtain and verify information about your assets and income (bring your bank and brokers statement, vehicle registration, title deeds, etc, your pay slips and tax returns, if you are self employed), whereas proving an old loan that you paid off upto 7 years ago is much harder, and it is that "gap" that credit scores are designed to plug.

tom169

Except in the real world with big banks and all the automation a credit score is a gate.

I dare say many that work in most of these establishments dishing out credit don't have the ability or knowledge to understand anything other than a number.

Pulaski

As I said above, the issue is that people don't understand what the number means.

If your credit score is below 600 it means that you have a habit of not paying your bills on time, or not paying them at all. It is hardly surprising then that if your score is low that mainstream banks don't want to do business with you. I think the lowest credit score I have ever had was still over 680, and that was probably around 12-13 years ago after a binge of new cards and loans; my score soon bounced back though.

Conversely, I can assure you, from personal experience that is possible to have multiple credit cards (and not just "two") with balances maxed out (meaning within $100 of the limit!), and still have a credit score that is well over 700, and as high as 750. ..... So only apply for credit occasionally, and pay your d@mñ bills on time! and you too will have a credit score that any lender will welcome.