Wreck your own credit score before applying for a mortgage

Wreck your own credit scores before applying for a mortgage.

Biden is oddly giving lower mortgage rates to those with bad credit scores and penalizing those with good credit scores.


He’s so dumb.


Hmmm, encouraging people who have either no history of paying off debt, or a bad history of paying off debt, to take out large loans seems like a bad idea, regardless of who is subsidizing the bank fees.

This reeks of 2008 and also the current tuition debt “crisis.” If I was a betting man, I’d say we will be hearing of mortgage forgiveness soon enough.


It’s subsidized by borrows with good credit scores who will have to pay higher interest rates.

He’s doing the same to those who put up large down payments. He’s charging them more to give better rates to borrowers with low down payments.

This is the opposite of what the free market has always done.


Those who don’t learn from mistakes are destined to repeat them.

From the article:

The average credit score in white communities was 727 in 2021, compared with 667 in Hispanic communities and 627 in Black communities, according to data analyzed by FinMasters, a personal finance blog.

If you have a 627 credit score, you probably sholdn’t be buying anything, much less a house.
The real estate crash in 2008 was fueled by this exact thing. 125% loans, no money down, etc…


Latest reporting is that nationally home values “on average” have declined for two straight months. Interest rates are expected to climb again with upcoming Fed Rate increases.

Saw an article by a top economist in the home industry and they made complete sense with their predictions. That is this totally stupid action by this administration is setting up another housing debacle. People who should not be buying homes will stretch their purchase out beyond what they can afford. The economy will continue to suffer and inflation will continue to stay at this level or increase. Many who can not afford it now but take advantage of this BS will be under water soon. Eventually the foreclosures will grow again! Will this result in another massive bail-out? Only time will tell.

Everything this idiot POTUS has touched has suffered. With his track record I can easily see this happening.


I foresee buyers with good credit crashing their credit score before applying for a loan. Easy to do. Miss a payment. Max a card. Last month, buying my Broncos season tickets maxed that card and knocked 32 points off my score, even though I pay my cards off every month and never carry a balance.

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I haven’t checked my credit score in 15 years. Mainly because I went to cash only after a battle with one of the main credit card companies after they cancelled my card without notice for being a “credit risk”. That said, my only credit debt is the my mortgage going on 16 years. I’m cash only now and if I don’t have it, I don’t buy it. Of course it hurts my “credit” score, but I really don’t care.

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The Biden is trying to destroy this country, so encouraging banks to make risky loans is a logical step…if that’s his objective which it appears to be.


If you understand that he and the libs want to destroy the USA, it all makes sense.


I use only credit cards with cash back. So, basically, everything I buy is 2 to 4% less than the cash price. To make that work, I have to pay off the cards monthly.


I’m in the same boat as you but not by choice. About 5 or 6 years ago, despite having a net worth in the many tens of millions, zero personal debt (not even a car loan), zero business debt, 34 pieces of real estate owned free and clear, and an 800+ credit score…I couldn’t get a mortgage on a $600K house I wanted to buy for a family member. The mortgage broker said my finances were too complicated to sell the loan. Another bank refused to write it because it wasn’t going to be my home. And then my own bank (Wells Fargo) turned me down as well. They wanted me to put money in their brokerage account, charge me to manage it, then have me borrow from it, and charge me again to borrow my own money (thus paying twice to use my own cash). Since then, other than my credit card, I don’t take out any loans for anything. These banks are scams. I know it’s stupid to be debt free when real interest rates are negative (Sorry Dave Ramsey, you’re wrong), but that’s what I am. It was actually scary to know I can’t quickly borrow money if I needed it. I thought I could borrow if I ever had to. It felt precarious. So now, I’m now not only my own bank, but I’m also my own central bank. And now with Biden telling us we have to wreck our own credit scores to get the best rates, I’m done with the entire banking system. He’s even punishing borrowers who have large down payments. The entire system is designed to only help people with low-paying, steady jobs, no down payment, and poor credit. That isn’t me. And now it’s even worse.


It’s pandering to his voter base and he knows that the fall out from this will happen under someone else’s watch 4-8 years from now. Just look at the seeds of the great recession which were planted during the
Clinton admistration and the Fed Chairman Paul Volker who refused to look into or regulate derivatives.

It’s worse than a participation trophy. Biden is now financially punishing those who did things right, who saved for their down payment and built a good credit score… and he’s subsidizing those who didn’t by giving them a lower interest rate.

I guess we should all wreck our credit scores and spend our down payment savings before we apply for a mortgage now.

Completely BS designed by virtue signaling elite’s who think social policy is more important than sound economics. Look at this spin on this thing.

I was debt free before moving to Florida and borrowed against my life insurance policy to open my business, paid myself back with interest and that account has doubled tax free since then. My last mortgage was last century. If I can’t pay cash then I don’t need whatever it is. What’s worse, leaving too much behind or outliving your money? :thinking: :moneybag: :money_with_wings:

No one should try to bring road paving to heaven. :smile:

Everything I buy, that I can buy, with a credit card, I do. Namely, I use my Kroger MC Card for everything except Costco because they don’t accept MC, only VISA.

With my Kroger MC if I spend 6K on the card I automatically get .25¢ off every gallon of fuel the following year plus points for every dollar I spend. I usually hit that mark by the end of March.

I save on average $1.10 a gallon everytime I fill up my Avalanche, I get perks/electronic coupons to buy food at Kroger, they used to send me checks, usually about $50.00 but now they just send coupons, many times for free food, and of course there are the cash back rewards.

I pay everything off every month to keep from paying interest charges and there are no annual fees.

Call it free money if you will.


You must not be married! :rofl: