JT in Pennsylvania said: “In an attemept to get my credit score up to get better rates I spent a few years trying and succeeding in getting it to rise. Using credit cards but it didn’t go very fast so I thought since the only loan I had was my mortgage that a small personal loan would be a help. I didn’t have derogatorys but had always paid cash so the score was low.
So I take a $9,000.00 line of credit, which was not explained as working like a credit card, and used it for whatever. Paid for 2 years on 24% interest. The credit score never moved.
Though it was the one late that I had turns out it was because I was 100% on the debit limit which has adverse effects. In the meantime I notice my roof is leaking and need other repairs. So I look for a second motgage to fix stuff. My credit score is too low for anyone but Beneficial Finance (HSBC) so i figure a second should help the score and will be able to combine them in a few months. I take their offer, at 13% and watch. My credit score (FICO score) goes up to almost 800!! I’m psyched!
Then my credit score plunged right back where it was! So I pay on time and do my job. Score still sitting with no movement.
The interest rates go down and I go to a well known lender. They say I only have a 655 credit score so too bad. I recieve a copy of the credit report. Beneficial has reported the second mortgage two times. That raises my debt amount and now I am at 87%, and look very risky. I call HSBC (Beneficial Fianance) and they say ok and then hang up. Now I sit and really look at my credit report. HSBC also reported the first line of credit several times, which has the same detrimental effects. I was showing very high unsecured debt!
They didn’t close some of the accounts, just zeroed them, and that effects things. If you stand back and look at what they did it appears they did this to keep my score where it was so I would have no choice but to deal with them! This is a scam! Beneficial caters to folks with 500 to 620 credit scores. The loan servicer told me that. They have no programs for people with better credit. By keeping the current customers down, they are guaranteed repeat business.”
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