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Washington Post cites FICO on credit score utilization magic number

Columnist Michelle Singletary writes what Fair Isaac recommends, Fair Isaac makes subsequent contrary statement

| By Greg Fisher

See Christmas in July.

From: Greg Fisher,
To: Michelle Singletary, syndicated personal finance columnist, Washington Post; Claire Tsosie, staff writer, Nerdwallet; Christine DiGangi, writer,
cc: "Elisabeth Hershman, media contact, Americas, Fair Isaac; Jeanne Kelly, credit coach/speaker/author
Date: Tue, Aug 2, 2016 at 12:13 PM
Subject: The advice business, credit score utilization ratio, keeping-it-under-30-percent myth #1605y

See this message and your response at [this page].

Credit Score Myth 2 (employers) is dying. Myth 4, however, lives. #Myth4

Ms. Singletary, you wrote, "If you must carry debt, FICO recommends keeping your credit card debt at 30 percent or less of your available credit."

Subsequently, Tom Quinn of Fair Isaac ("FICO") stated

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

Ms. Tsosie, you wrote, "FICO recommends keeping it even lower, below 30 percent on every card, for good credit."

Ms. DiGangi, you wrote, "FICO recommends keeping your utilization below 30%."

See an article I wrote about the phenomenon, urban legend and confusion: "Credit score utilization ratio, the magic number - Myth #4 - Debunking the myth of the 30 Percent Solution, the credit card balance to-limit ratio safe zone."

There is enough blame to go around. Nothing special happens at 30%. Citizens are misinformed. Regardless of what someone at Fair Isaac said, what is the truth?

Will you make a clarification?

This is important, so please reply today. #1605y

Greg Fisher
Truth and Falsity
The Credit Scoring Site
PO Box 342
Dayton, Ohio 45409-0342
mobile/text 937-681-3224

Follow the activity of Item #1605y using that hashtag.

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