SubscriberWise®, a leading provider of analytics-driven subscriber decision management technology and the nation's largest issuing consumer reporting agency for the communications industry, announced today that the company CEO is offering specific advice for consumers seeking to maximize their FICO credit scores.
The information is intended, and particularly important, for consumers who are actively in the market for loans and other credit products.
According to the CEO, maximizing a credit score and understanding the granular predictive factors of one's credit should be a pursuit for everyone.
"To most educated and reasonable people, it seems ridiculous and counter-intuitive – perhaps even outrageous and unreasonable – that a credit score would generate fewer points when every credit card or revolving balance contained on the consumer report is updated with zero balances owing," commented
"To expand and clarify this point further, when a credit score is generated at the very moment the file contains no reported revolving balances outstanding, this will result in a lower credit score. While this may not be demonstrated for every unique credit scenario, this fact is certainly true among consumers who otherwise generate high percentile credit scores (FICO 760 to 850)," Howe added.
"Although I don't have the evidence to substantiate the same negative impact for every scorecard and every possible scenario, it's reasonable to assume that this scoring dynamic will remain consistent for all credit circumstances," argued Howe.
"Consumers should understand that a loss of points in this otherwise counter-intuitive situation is the result of predictive analytics," explained Howe. "Despite comments from conspiracy-theorists and others, it's not because FICO and model developers want to confuse, trick, or fool the nation's credit consumers. Rather, in the absence of (responsible) revolving utilization, the scoring algorithms calculate and assign fewer points. Why? Because it's an empirically derived fact - from a statistical evaluation of millions of consumer credit reports - that individuals who maintain an active 'mix' of credit (i.e. an installment loan with one credit card balance), they are proven most reliable from the standpoint of their credit reports and future payment behavior.
It's a point worth noting that predictive analytics and rank-order technology flow form highly refined and sophisticated processes that evolve over time and with changing economic and financial realities (i.e. FICO 8 vs. FICO 9; Vantage model updates). These processes are typically created by highly trained and experienced PhD mathematicians, statisticians, scientists and other experts who have no interest other than making their models highly accurate," remarked Howe.
"I've incorporated a screen shot from an
My credit card statement closing date is the 4th. I paid the account to a zero balance. However, on
Earlier this year, Howe explained credit inquiries:
About SubscriberWise and
SubscriberWise founder and president
Howe is the only known individual – living or deceased – to have obtained simultaneous perfect FICO 850 across every national credit bureau. Howe has also obtained multiple perfect Vantage 990 scores. Howe has obtained FICO Professional Certification and is also the first and only citizen of the world to describe and report the details of the perfect FICO score to a U.S. reporter.
Howe produced and published two videos on the subject of perfect credit: FICO 850 Credit Report Facts and FICO Scores: The Facts. The first general-purpose FICO scores were debuted nearly a quarter century ago.
SubscriberWise® launched as the first U.S. 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 independent cable operators. Today SubscriberWise is a risk management preferred-solutions provider for the
SubscriberWise contributions to the communications industry are today quantified in the multiple tens of millions of dollars annually.
SubscriberWise is a
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