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Score Suicide WarningPresident Bush announced a plan on December 6, 2007 to will freeze interest rates for up to 1.2 million subprime ARM borrowers in an effort to aid the economy through the housing slump. To qualify for a five-year rate freeze borrowers must:
The credit score maximum included in this plan could incite consumers to commit “score suicide;” voluntarily destroying their credit in order to qualify for the rate freeze. Because credit scores carry negative records for 7+ years, it's possible that worried borrowers may cause lasting damage to their credit. Credit.com cautions consumers against:
And consumers shouldn't forget that lowering credit scores could also impact their ability to open new accounts, insurance rates and credit card rates. If you are a reporter interested in learning more about “Score Suicide,” please contact Emily Davidson at emily@credit.com or 415-901-1559. |
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