Please help me lower my credit score!

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I never thought the day would come that I'd be looking for ways to lower my credit score. I've always been a responsible borrower, and because of that, I have a very high credit score. That's convenient when I want to finance a car or open a new credit card.

But thanks to the new subprime mortgage bailout, it's not so nice anymore. The government isn't giving money to anyone, but irresponsible borrowers are being "bailed out" of their home mortgage problems. I don't think it's fair.

Here's the solution: Be an irresponsible borrower with an Adjustable Rate Mortgage that is going to reset, and you get your rate frozen for another five years. Yahoo! That bargain rate that you got a few years ago will now continue for five more years, even though interest rates have gone up on the open market.

According to fellow WalletPop blogger Lita Epstein, if you have a credit score above 660 or you have 3% or more equity in your home, this plan is a no-go. Your reward for having good credit and for having built up equity is the opportunity to go and refinance your mortgage at higher rates.

But if you have a poorer credit score (below 660) and less than 3% equity in your home, it's bonus time for you! Who would have thought that not-so-good credit and living in a house you can't afford (as evidenced by your lack of equity) would pay off so huge???

Imagine the bonus this is to the irresponsible borrowers. They're probably going to save anywhere from 3% to 7% per year in interest charges with this rate freeze. On a $200,000 mortgage, that's a savings of $6,000 to $14,000 per year in interest charges.

Sign me up!

You better believe that between now and the date when my adjustable mortgage rate is scheduled to expire, I'll be busy doing two things:

1. Borrowing from my home equity line of credit so that I have less than 3% equity.
2. Doing whatever I can to get that pesky little credit score below 660.

Why should I have to refinance at a higher interest rate when the irresponsible people get an annual bonus of $6,000 to $14,000?

Anyone with tips on lowering my credit score, please leave a comment!

Forensic accountant Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations through her company, Sequence Inc. Forensic Accounting. The Association of Certified Fraud Examiners honored Tracy as the 2007 winner of the prestigious Hubbard Award and her first book, Essentials of Corporate Fraud, will be on bookshelves in March 2008.
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