Either one of us doesn't understand the OP's original question or I think somebody's being overly dramatic.
@Dustink.....Fraud is defined by intentional deception. Our credit worthiness in the eyes of creditors is based on our credit reports. Why offer them anything unasked that may hurt yourself. They sure as heck don't accept additional positive information that isn't in there...."I promise I pay all my bills on time even though you dont see that".
@09Lexie.....this whole board is about how to play the "credit game". Do you also think its unethical to lower your revovlving utility just so you can app for new credit and larger credit limits so you can charge more balances, or simply just maximizing your credit profile before apping? The lenders might see this as unethical or luring to trick them into giving you credit.
Should someone applying for credit who knows they just had an account go to collections disclose that information to the creditor during the application process? I'm betting your answer is no.....and I fail to see the difference.
The OP is asking about a hypothetical credit application down the road and whether they should disclose information, that may hurt their chances, assuming it isn't asked for.
Lying is unethical....and fraud. Applyin for credit you know you cant or wont pay back is unethical and fraud. Not disclosing information that isn't asked for is playing the credit game, IMO.....and there's nothing wrong with it.
What's really unethical is for these banks to have accepted hundreds of millions of dollars to keep themselves in business while kicking families out of their homes and not even attempting to work things out with them.
So when these banks are honest and fairand not accepting public funds...go ahead and automatically disclose whatever you want.
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@fittiger I couldn't have put it better myself. We are not committing fraud as I am simply asking since there will NEVER be proof of a positive or negative payment on this mortgage again... It appears on our report that the house went with the bk.
My point was simple, if asked on a cr application - and I know of none that do not ask housing info- and OP is making a mortgage pyt and fails to disclose it is lying. Lying on a cr application is fraud.
Regarding util and lowering them for your chances of approval. Most on this board understand how FICO scoring works - we decide if we wish to PIF each month or carry a balance. Comparing lowering one's util to obtain a cr approval is not even in the same ballpark as deliberately failing to disclose. In your scenario, why not inflates one's income cause that is also a determining factor on approval. IMO, that is also unethical and lying
We can agree or disagree- but if you were a lender and reviewed an application where the mtg pyt is left blank and made a decision to approve cause now OPs d-t-I is lower, would not you feel deceived?
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