Why Good Credit Doesn't Work Anymore | The Black Box | 1442

Epic Real Estate Investing

Matt Theriault

Education, Business, Investing, How To

4.8 • 955 Ratings

🗓️ 13 March 2025

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this episode, discover why 45% of prime borrowers are getting rejected despite having good credit scores. With banks now using black box algorithms analyzing 132 hidden variables, traditional metrics like credit scores have become less relevant. Between new Buy Merge rules and major lenders demanding higher income floors, the lending landscape has shifted dramatically. Learn how AI-driven algorithms and tightened regulations are affecting loan approvals, and explore strategies to navigate and secure funding in this challenging environment. A detailed funding guide is included to help you stay ahead of these rapid changes. Jessica's funding playbook: https://docs.google.com/document/d/1qXurYfk_cKZUoQO1lDmaEN1MlCTnYwrj28FXFapRZ8E/edit?tab=t.0 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Terio Media.
0:04.0	Hey, strap in!
0:07.0	It's time for the epic real estate investing show.
0:10.0	We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair.
0:19.0	If you're looking for some one-on-one help, meet us at
0:21.7	rei-aise.com. Let's go. Let's go. Let's go. Let's go. Let's go. Let's go. If you think having good
0:29.6	credit guarantees loan approval, you're about to discover why 45% of prime borrowers now get rejected.
0:36.5	Banks have deployed publicly undisclosed black box
0:40.0	algorithms analyzing 132 hidden variables, from your education level to grocery purchases. Yeah,
0:46.4	they can see all of that. A 2025 Federal Reserve study reveals 68% of these rejections
0:51.9	stem from criteria having nothing to do with credit scores or
0:55.3	payment history. So while you've been focused on maintaining that 700 credit score, here's what
1:00.1	changed. With consumer protections being stripped away and banks now legally ignoring one-third
1:05.7	of your credit history under new bi-merge rules, traditional credit metrics have become increasingly
1:10.6	irrelevant.
1:11.8	So while you work on your simple credit score,
1:14.3	banks have moved far beyond simple.
1:16.7	Their AI-driven algorithms analyze everything,
1:19.9	from your shopping habits to your educational background,
1:22.4	creating an entirely new framework for rejection
1:25.1	that most people don't even know exists.
1:27.1	The numbers tell a stark story,
	...

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