Monkey and a Dartboard

For those of you who do not deal daily with the wonderful credit industry let me clue you in on something: credit goes against common sense.

Why do I say that? Well, if you pay for things in cash and don't have any open credit then you are shorting your credit. Tradelines (most companies want a mortgage plus 5 active accounts) to show your credit worth. If you don't have any accounts or not enough accounts you are a risk. If you have too many accounts then you are a risk.

In my experience I have seen an 880 "mid" score and a "420" mid score. Admittedly, the bottom number did everything possible to earn that score including "I told them to come git that truck, it shows as a voluntary repossesion right?" Yeah bubba, it show do. The top number owned the same home for 20 years and paid everything off early.

Then comes the one I pulled in July 2003 where the individual had not paid his Countrywide mortgage in five months. The mortgage was what we call a "rolling 150" or better known as a "let's just call this a foreclosure" in my business. Folks their "mid" score was a 699. Thus was born the monkey and a dartboard theory. Must have been a lucky shot for those guys!