It’s Working! Winning the Credit Game, FWIW
A couple of month back, I blogged that I wanted to raise my mediocre credit and wasn’t too happy about the only way I could find to do it: Taking on more credit, in the form of a brand-new Amazon rewards card and asking my credit union to raise the limit on my existing card.
The good news is, at least it’s working! Credit Karma shows that my score has gone up by a solid twenty points. Credit Karma is not super exact, but it does at least show the overall trend. They have me at 695, or poised at the top of “Fair,” but it gets better.
Mr. FP and I wanted to start looking at houses, at least to start getting an idea of the market, and real estate agents don’t like to drive you around unless you are preapproved for a mortgage. So we went ahead and did that, and of course the lender pulled our credit scores.
They showed me at every bit of 725. That’s right, folks, they consider me someone with GOOD credit. And now, this part is petty, but it made me happy: I now have better credit than Mr. FP by a coupla points. His was higher than mine because he carried all our credit cards and had taken out an ill-advised car loan, and I never thought it was fair that an ill-advised car loan ought to raise one’s credit.
I’m happy that our credit looks good, but the system still seems off. Why should taking out more credit cards make me more mortgage-worthy when, let’s remember, I defaulted on my mortgage* a mere four years ago?
Other oddities in the system: According to the lender, our incomes—which are less than $90K a year, even with my side gig editing trivia questions—are adequate for a mortgage of, brace yourselves, four hundred and seventeen thousand dollars. We would have to come up with 5% down, which we could do by cashing out or borrowing against our retirement accounts, and no one would stop us. Yikes, that’s a scary thought. You’ll be relieved to know we are not looking at $400K houses.
Have you ever had to game the credit system? Any brilliant suggestions for how to fix this seriously limited metric?
*Still not proud of this. I remember now, though, that we were required to pay for private mortgage insurance on account of our low down payment, so… I guess the system worked.