What I Learned from My Credit Report...

[stopbush]

So, I'm applying for a pre-approval on a home loan (I've owned a home in the past), and my credit report reveals two items that are considered flags for a potential lender:

1. I've moved too many times in the past 5 years (the result of chasing jobs in the non-existent * economy...we've been in 3 different locations in two different states in the past 3 years), and (drumroll please!)

2. I've paid off the balances and then canceled a high number of credit cards in the past 10 years (you may want to read that again).

Seems the fact that I've got it down to 3 credit cards and have balances at about 50% of the credit line on all of them is BAD. What I SHOULD have is 10 credit cards with 10% of the credit line used on each one!

That fact that we purchased and sold a house and paid off two car loans in that period with NO LATE PAYMENTS anywhere just doesn't seem to matter (and we pulled that off even while I was out of work for almost 3 years).

BTW - I did get a pre-approval, but at an extra half point above the rate I would have qualified for if my rating was "outstanding."

Further BTW - I'm about 5 tics under the "outstanding" rating...as in, if 700 is outstanding, I'm at 695.

[Mojambo]

1. It's an absolute scam

How dare you NOT have massive credit card debt!

[cynatnite]

2. Damn and I thought we were doing good for only have two credit cards

and have paid down most of our debt.

Maybe I should feel guilty :freak:

[stinkeefresh]

3. the whole concept of Credit Rating

is completely evil.

The fear of bad credit keeps people in line. I may never own a home, but I don't give that credit crap a second thought. No credit cards here.

I think someone could run for president on the issue of predatory lending and win.

[Gyre]

4. Just sit tight and wait for the market to explode.

They'll be sucking your crank (or equivalent if you're female) to get you to take a 30 year fixed in a year or so.

Gyre

[slackmaster]

5. My FICO was 803 last time I checked it

I have ONE credit card that I use and normally don't carry a balance on, two credit cards I have never activated, a first TD, and a HELOC.