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Urban Legend - Part 1

Washington think tank gets press

| By Greg Fisher

This story begins with an earlier reference to a document published by the credit bureau Experian.

In a document titled "What is a Credit Utilization Rate?," the credit bureau Experian states, "Your credit utilization rate, sometimes called your credit utilization ratio, is the amount of revolving credit you're currently using divided by the total amount of revolving credit you have available."

Notice the word currently.

For CNBC's website, Megan Leonhardt wrote, "The amount spent on your credit cards at any given time should always stay below 30 percent of your total limit, according to the Urban Institute."

The word stay

Leonhardt Liked that.

FROM: Greg Fisher,
TO: Bob Annibale, Citi
CC: Stu Kantor, Urban Institute; Diana Elliott, Urban Institute; Ricki Granetz Lowitz, Working Credit NFP; Michelle Singletary, Washington Post
DATE: Mon, Sep 24, 2018 at 10:18 AM
SUBJECT: credit score, employers, City

Michael Corbat, CEO, Citigroup
New York
Bob Annibale, Citi

I am in the media, on a deadline and writing about you.

Certainly, before I really get started (and there is a lot to complain about), given Mr. Annibale's discussion of it, I would be remiss not to take you to task over your false statement about credit scores and employment screening. It is the tenth anniversary of an article I wrote about that. So many years later, the phenomenon even has a name: Credit Score Myth2. I use it as a verity test.

Bankersplaining, you state, "Lenders use credit scores to decide whether to lend money and at what rate, landlords look at it before taking on tenants, insurers use it to set premiums and employers factor it into their hiring decisions."

That is not true. Employers do not use credit scores. I looked into it a long time ago. The top three credit bureaus all told me that they do not provide credit scores for employment purposes. Today, people in the know snicker when somebody repeats Myth 2. What is the name of the person who wrote that sentence?

You published false information, so I am going to challenge your charter. You are not too big to fail. Nobody is. If that seems silly to you, do you have any better ideas?

I am sick and tired of false information. Please reply today.

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

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