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    Really, credit score too high ?

    In the process of refinancing mortgage, loan guy tells DH that both of our credit scores came back and that although they are excellent, mine is actually " a little too high ". DH didn't ask him what he meant. I' m not going to do anything differently. I do try to protect my score, but don't make any financial decisions in an attempt to boost it. Just curious as to what he meant.
    Last edited by eeyoresmom; 12-27-2010, 07:55 AM. Reason: Spelling

    #2
    I have no idea what that could mean. How could your credit be too good, especially when applying for a mortgage?
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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      #3
      I've heard of being overqualified for a job because of too much experience or education, but I've never heard of being overqualified for a loan.

      Tell the loan officer that you will promise to default on the first few payments of the loan. You know, just to get your score more in line.
      Brian

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        #4
        Perhaps he means that he would like you to have a lower credit score so that his institution could charge you a higher interest rate, and he could get a bigger bonus?
        Whatever the reason, I wouldn't change a thing either!

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          #5
          Originally posted by bjl584 View Post

          Tell the loan officer that you will promise to default on the first few payments of the loan. You know, just to get your score more in line.
          IKR, lol!!!

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            #6
            Was that your cue to ask for a couple of points off the interest rate on your new mortgage? It's not too late to phone and ask!

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              #7
              Originally posted by eeyoresmom View Post
              In the process of refinancing mortgage, loan guy tells DH that both of our credit scores came back and that although they are excellent, mine is actually " a little too high ". DH didn't ask him what he meant. I' m not going to do anything differently. I do try to protect my score, but don't make any financial decisions in an attempt to boost it. Just curious as to what he meant.
              I never heard of anyone complaining about too high of a score. I have a high one and I never received a negative comment. Maybe he/she was jealous?

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                #8
                Can Your Credit Score be Too High? - FoxBusiness.com

                Yup, it's possible to deny people with "too high" a score

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                  #9
                  Interesting article. It makes sense that the cc companies would want your score a little lower, hoping to make more interest off of you, but doesn't really make sense for a mortgage loan. The loan officer was just making conversation with DH, this is probably what he meant.

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                    #10
                    Such a statement from a loan officer would be my cue to find a new lender. There's a big difference between a mortgage and a credit card. My guess is that mortgage company looks for justifications for charging slightly higher interest rates and/or points and the "too high" statement means that they can't make as much money off of you.

                    Find another lender.

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                      #11
                      Originally posted by eeyoresmom View Post
                      doesn't really make sense for a mortgage loan.
                      Sure it does. Lower FICO equals higher mortgage rate. Also, better chance of late fees. Disgusting, but true when you think of it that way.
                      Steve

                      * Despite the high cost of living, it remains very popular.
                      * Why should I pay for my daughter's education when she already knows everything?
                      * There are no shortcuts to anywhere worth going.

                      Comment


                        #12
                        Originally posted by disneysteve View Post
                        Sure it does. Lower FICO equals higher mortgage rate. Also, better chance of late fees. Disgusting, but true when you think of it that way.
                        Right. But but then shouldn't I have a lower score since I'm not the "ultimate" lendee? LOL

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                          #13
                          Originally posted by eeyoresmom View Post
                          Right. But but then shouldn't I have a lower score since I'm not the "ultimate" lendee? LOL
                          No. The FICO scoring system was designed to impartially "predict" risk to lenders.

                          The lending community - Banks, Credit Card Companies, Mortgage Companies, Finance Companies - all know that borrowers with middling credit scores represent an acceptable balance between risk and profitability. An extremely high credit score means you're a very low risk borrower. You're also not a very profitable borrower because you're not likely to be a source of additional revenue for the lender in terms of fees or credit insurance, etc.

                          Lenders can't come out and say they don't like people with credit scores that are too high because (a) it would be very bad public relations and (b) might backfire on them in terms of increased delinquency because folks wouldn't want to have credit scores that are "too high"

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                            #14
                            It could mean the bank more specializes in higher risk loans.

                            It's like me going in to apply for a 1-800-SAFE-AUTO policy (the minimum in NJ) for auto insurance.

                            With my needs, I am just not a match for the company.

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                              #15
                              Originally posted by Scanner View Post
                              It could mean the bank more specializes in higher risk loans.

                              It's like me going in to apply for a 1-800-SAFE-AUTO policy (the minimum in NJ) for auto insurance.

                              With my needs, I am just not a match for the company.
                              Not the case.

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