Good lord. We have apparently learned nothing from the subprime debacle. At least the city of Houston hasn’t learned anything. In a bid to encourage homebuying, the city is considering helping its residents pay off their credit cards so that they might get a slight bump in credit scores.
The “Credit Score Enhancement Program” will give up to $3,000 in grants to individuals who are trying to qualify for mortgages through the city’s homebuyers assistance program. City officials say some applicants fall short of eligibility by only 10 or 20 points on their credit scores, and paying off some debt balances can quickly improve their numbers.
Now granted, we think the credit score system is messed up, but seriously, the city council members that support this must mean that having a good credit score just makes you automatically credit-worthy. It’s like thinking that if we give children A’s on their report cards, then they’ll get smart.
Oh wait, we do believe this.