September 2007 the credit scoring system is going to make a change that will affect 165 million people all at once. Who are these people? Answer – authorized users!

Fair Isaac is updating their software to eliminate the “authorized user” loophole that allowed people to piggy-back with someone who had good credit and increase their credit score 100 points in less than 30 days.

Fair Isaac estimates that there are 165 million “authorized users” and it will have a serious impact on credit scores when authorized users are virtually eliminated from the credit scoring model.  Ms. Orman’s trick of adding a child to a credit card as an authorized user when they are young so that they have good credit when they are 18 is not going to work anymore!

The authorized user trick was to have someone with a seasoned credit card that is carrying zero or very low balance add that person to their credit card as an authorized user. The company started selling these cards to people with bad credit to bump their credit score in less than thirty days to get a mortgage or car loan. Once the loan was obtained the person was removed as an authorized user. The company makes money, the person with the credit card is paid, and the person who was added now gets the credit they didn’t qualify for originally.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713