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CFPB and an answer about credit score utilization ratio

Christmas in July - The U.S. Consumer Financial Protection Bureau on asking questions and getting answers

| By Greg Fisher

The title of a U.S. Consumer Financial Protection Bureau blog post is "You have the right to ask questions and get answers."

The author of the post, Gail Hillebrand, writes

In today’s complicated financial landscape, everyone faces questions about money from time to time. That’s why we created Ask CFPB: a source of clear, impartial answers to hundreds of financial questions.

Hillebrand, who is the CFPB Consumer Education & Engagement Associate Director, continues, "In our 'credit reports and scores' section, for example, you’ll find questions like, 'How can I get and keep a good credit score?'"

She links to another federal government document titled, indeed, "How do I get and keep a good credit score?"

And who wouldn't want to know that? The linked page states

Don't get close to your credit limit. Credit scoring models look at how close you are to being "maxed out," so try to keep your balances low in proportion to your overall credit limit. Experts advise keeping your use of credit at no more than 30 percent of your total credit limit.

However, earlier this month, Fair Isaac, the FICO credit score company published a question and answer of its own:

Q13: I've heard having 30% utilization on my credit cards has the best impact on a FICO Score. True or False? #MeetFICO

A13: Not true. In general, the lower utilization the more points received. #meetFICO

Not only that, Santa Claus has a "maxed out" credit card, and his FICO score is a not-so-bad 757!

So, that begs other questions for the CFPB. Here goes.

What's so special about 30 percent?

What are the names of two such experts?

Follow the activity of (and see any answers to) this item with the hashtag #1605y.

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