Tag: credit score

Your Bank’s Big Lie About How Credit Scores Affect You

I recently conducted a private class for the parishioners of a church about how credit scores affect you. After the class ended, one of the participants, Lori P., sent an email that shows how banks lie to their customers.
I am involved in an entrepreneurial program that helps people become business and home-loan ready, as well as get them ready for business start-up. Four of us in the program had attended a meeting with a founder of a minority bank here in Los Angeles that explained to us how to become loan-ready for his bank. He mentioned that all we needed was a 630 credit score along with other criteria.

‘I thought, “Wow, only 630? That seems easy.”

‘Then when I listened to your program, it made sense why we only needed a 630: It would be money in the bank’s pocket.
-Lori P.”

I was livid when I received this email. Lori is helping people from her community take control of their financial future, and the banker is thrilled to charge them higher fees because of a lower credit score. How are hardworking Americans ever supposed to get back on their feet when their banks are ripping them off?
And this happens all of the time. Every single day—every single hour and probably every single minute—a banker neglects to tell a customer about the easy steps people can take to fix a bad credit score.
Instead of telling the truth about how credit scores affect you, banks across the country are letting their customers pay an arm and a leg in interest rates.
For instance, the banker Lori met with isn’t telling her that the difference between a 630 credit score and a 720 credit score is $63,720 over the course of a 30-year loan on a $216,000 mortgage.
The bank is deceiving its customers to the tune of $63,720!
I wrote 7 Steps to a 720 Credit Score because I wanted to help my mortgage clients learn how to build credit and lower their interest payments. Then I decided I wanted to spread the word about how credit scores affect you. I went to bank after bank, telling them I would give them access to my book so that their clients could how to raise their credit scores and negotiate lower interest rates.
Guess how many banks signed up.
Not one. Why would they do the right thing when they could pocket $63,720?
This is so typical of what happens every day.  While the “little guy” struggles to get his head above water, the government is busy bailing out big business because they are “too big to fail.” And these very same businesses turn around and lie to their customers. This is flat-out unfair and wrong.
Learn how credit scores affect you, and stop the banks from stealing more of your hard-earned money. Download The 35 Things Your Bank Doesn’t Want You to Know About Credit.