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Ah, purchasing a mortgage, that bastion of financial success, the flashing sign that you’ve made it, the smartest way to spend money, and the best way to build wealth.  Is this still true?  In times past Real Estate was the smartest way to use your money, because, like the stock market, housing values (while experiencing minor dips occasionally, usually went up over time), but then 2008 happened. Prior to that year, hedge funds and other financial institutions [cough big banks] created mortgage-backed securities, and insurance companies covered them with credit default swaps. High demand for this rock-solid can’t-fail securities led…

  Recently, a credit repair and tradeline company was shut down by the FTC. According to the FTC’s complaint, the owners scammed people out of $6.2 million dollars over the course of their operations since 2014. If you want the details, the press release is here. This company had several websites where they claimed to be able to boost credit by removing negatives and inquiries, then adding tradelines afterwards to shoot the score up even more.  So what happened? Does this mean that all companies, even the “best tradeline companies” are out to take your money and give nothing in…

  Part 1 The most constant thing in the world is change. Sometimes drastic--think major life events, natural disasters, etc...and sometimes subtle and slow--think erosion, paint drying, etc. Credit is one of those things that change gradually over time, hopefully a slow steady rise to elite territory (760+) and staying there...but credit can also drop drastically if you miss a payment on your credit card, mortgage, etc.  You can get your credit to jump quickly, with tradelines, which are credit cards that report authorized users. Perhaps you’ve heard of them. “Piggybacking” is the official term, as you are using someone…

  Just what is the origin of piggy back ride as far as we have come to know it? Well, a long time ago, think 16th century, people would carry a bag on their back called a “pick pack,” because you could pick it up and put it on your back. The Pick Pack eventually got called a “pick-a-pack” and that eventually became “pick-i-pack” and that eventually became “piggyback,” which now refers to the practice of someone jumping on your back and going for a ride, hence “piggyback ride.” The term refers to something fun and playful done between humans,…

HOW TO ESTABLISH TRADELINES FOR MY COMPANY A few years ago, the creators of the FICO credit scoring system announced that they would stop including authorized users in the latest version of their FICO 08 scoring model which essentially will place an end to “piggybacking”. The monopoly of credit reporting i.e. Transunion, Equifax and Experian did not consider the Equal Credit Opportunity Act also referred to as Regulation B. They later reversed their decision since it would be incompliant with ECOA and here is what experts have to say: “Fair Isaac, following the recommendation of the FTC counsel, admitted that…