FICO Max Scorecard: One Installment and One Revolving Account with Low Utilization, GOAT Howe Says
David Howe, SubscriberWise founder and the worldwide highest FICO achiever in human history, offers specific details to maximize scores
Apr 24, 2017, 11:43 ET
LAS VEGAS, April 24, 2017 /PRNewswire/ -- SubscriberWise, the nation's largest issuing CRA for the communications industry, announced today specific credit insight from company founder and global master-champion all-time worldwide highest FICO and Vantage Score achiever David E. Howe.
Watch U.S. Credit Czar David Howe explain the details of the perfect FICO 850 score: https://youtu.be/8XhfoIRY6NI
"I regularly receive inquiries from interested consumers around the nation and the world about credit and credit scoring," confirmed David Howe, SubscriberWise founder and FICO G.O.A.T. "And one of the questions I receive most often is whether I know the FICO 'secret sauce'.
"I routinely reply that I do.
"I also immediately expand this response to say that everyone else also has the FICO formula for super-success. In other words, the 'secret sauce' is really not a secret at all (http://www.myfico.com/credit-education/credit-report-credit-score-articles/).
"Indeed, the ingredients that eventually determine an excellent credit score are readily available and easy to understand," Howe emphasized.
"However, for consumers who have near-prime and prime FICO scores in particular, understanding the more complex - and seemingly illogical - multi-dimensional factors that can maximize their points could make a difference in the terms offered for various financial products.
"In fact, for most consumers, including FICO high achievers who are often perplexed why scores aren't even higher, separating personal intuition from science and empirically derived analysis remains an area where increased knowledge would likely result in even higher scores," Howe noted.
"It's already obvious that timely payments, low revolving utilization, an established history, a favorable mix of different types of credit accounts, and a limited number of inquiries are the primary ingredients in the FICO sauce.
"So what's the secret to boost a FICO score into the stratosphere when the FICO key ingredients are achieved and nearly optimal," Howe asked?
"For the majority of consumers, again assuming there's nothing adverse on the file and the primary FICO factors are favorably established, the best way to increase points includes the following suggestions:
- Have one revolving balance with utilization at or below 7 percent on a single credit card at the time you apply for credit.
"It's a fact that having no outstanding revolving balances will lower a FICO score. Moreover, consumers without at least one revolving balance will get segmented into a scorecard that will never reach the maximum number of points," Howe added. - Have only one installment loan with a balance.
"Ideally, the installment loan should be booked for at least 14 months with 50 percent of the original balance paid. It's a fact that having multiple installment loans will not adversely impact a score significantly, particularly compared to multiple revolving balances with high utilization. - No hard inquiry is ideal. A single inquiry will have a minimal impact.
"Obviously these best-case-scenarios can't always be achieved," concluded Howe. "But knowing the key ingredients, as well as the granular intricacies of scoring, is a source of empowerment that will likely lead to long-term financial health and stability."
About SubscriberWise
SubscriberWise® launched as the first issuing consumer reporting agency exclusively for the cable industry in 2006. In 2009, SubscriberWise and TransUnion announced a joint marketing agreement for the benefit of America's cable operators. Today SubscriberWise is a risk management preferred-solutions provider for the National Cable Television Cooperative.
SubscriberWise is a federally registered trademark of the SubscriberWise Limited Liability Co.
Contacts
SubscriberWise
David E. Howe, 330-880-4848 x137
SOURCE SubscriberWise