Bad Credit? No Problem -- You Can Buy a Better Credit History

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Another excellent (and troubling) column from Kenneth Harney: he’s uncovered a scheme in which people with sub-par credit can go out and BUY a better credit history so that they can qualify for a better mortgage.

‘... federal and state authorities fear that some borrowers are turning to a fast-growing business on the Internet: companies that claim to boost credit scores by transplanting the credit DNA of people with excellent payment histories into the credit files of people with subpar histories -- ostensibly without breaking any law.

‘Big bucks -- and a strong potential for fraud on mortgage applications -- are involved. Some website promoters say they can add 80 to 120 authorized users onto a high-quality credit card account before banks or lenders get suspicious. Each account can rent for as much as $1,500 to $2,000 for a 180-day usage. The primary credit card holder receives a cut of the rental fee, often hundreds of dollars for each authorized user added to the account.’

Comments? Thoughts? Comments, in good taste, are always welcome.