Market Overview

FICO Czar Howe Challenges 'Credit Experts' After Alleging CNBC's Yoni Blumberg Misreports the Myth Correctly Dispelled by FICO's Ethan Dornhelm


The world's highest FICO and Vantage achiever since the founding of
Fair Isaac wants to finally set the record straight and educate the
‘credit experts' about the impact of reported balances at the time of

the nation's largest issuing CRA for the communications industry and the
leading protector of children victimized by identity fraud, announced
today the public challenge to CNBC's Yoni Blumberg -- and any other
financial writers who may be interested – who inadvertently, and
inadequately for that matter, misreport the information that consumers
need to know about the impact of favorable utilization (low
credit-to-debt ratios on credit obligations, particularly revolving
accounts) on the calculation of FICO scores at the very moment a score
is requested.

The public challenge is made by SubscriberWise founder and CEO David
, the first and only consumer in global banking and financial
history to achieve simultaneous perfect FICO and Vantage scores across
every national repository and to also report the details that
continuously generate perfect scores to national reporters including (
and the Motley Fool (

Related: (YouTube) Credit myth busted: FICO utilization explained by
SubscriberWise founder and US Credit Czar David Howe --

"Almost immediately after Yoni Blumberg published the story ‘3 myths
about what affects your credit score that FICO wants to clear up for
you' (,
I tweeted him offering to discuss the misinformation that he published,"
confirmed David Howe, SubscriberWise founder, FICO GOAT, and America's
child identity guardian. "Unfortunately, I never heard from Yoni and
I've not seen a correction since the story was published on August 15,

"In the story, FICO's Ethan Dornhelm (
correctly dispelled the myth that ‘One of the biggest misconceptions
about FICO scores is that you have to carry a balance on your credit
cards in order to build a credit history.' Not surprisingly, Dornhelm
was exactly right when he reported that ‘This is completely
inaccurate,'" Howe confirmed. "The problem, however, is that Yoni
apparently didn't understand what Dornhelm said. Yoni incorrectly
reported the following as a myth: ‘Carrying a balance improves your
score.' But that's not what FICO's Dornhelm said at all. Dornhelm said
that it's not necessary to carry a balance on your credit cards in order
to build a credit history. And that's, in fact, accurate," Howe

On the other hand, to say that ‘Carrying a balance improves your score'
is a myth – as reported by Yoni – is ironically not a myth at all.
Because carrying a balance can and does improve a FICO score. Moreover,
carrying both a revolving balance and an installment balance with
favorable utilization is the most ideal scoring scenario for FICO's max
850 scorecard," Howe said. "Interestingly enough, and of course
counter-intuitive to the untrained consumer, having no reported balances
– having a credit report with zero obligations across every reported
account – this will result in a significantly lower score than one with
one or two balances that each contain favorable credit-to-debt ratios.

Related: FICO Professor Howe Aligns 850 Perfection at Equifax, Experian
and TransUnion with Never Before Published Reports Sourced Directly From
Fair Isaac --

"Yes, to reiterate, Dornhelm said correctly that it wasn't necessary to
carry a balance on your credit cards in order to build a credit
history," Howe added. "And that's very different from what Yoni reported
as the first myth in his story:
Dornhelm is right, while Yoni Blumberg got confused by the information
FICO provided.

"So, to help Yoni – and any other ‘expert' who fails to fully understand
FICO scorecard technology and the impact of a reported balance(s) with
favorable utilization at the moment a score is generated, I have a
simple challenge," Howe continued. "I'll meet with any reporter anywhere
and I'll let that reporter choose which repository to process my
personal credit at Fair Isaac's ‘myFICO' (
We'll process the credit with zero obligations across all credit
accounts. The result will be a general-purpose FICO score (range 300 to
850) of just under 800. We'll process again in a week or so after I make
a small purchase on a revolving credit obligation and the purchase posts
to the same repository the reporter initially selected. The result will
be a boost to the credit score of approximately 37 points. The score
will be around 835. It's that simple.

"I'll just ‘carry' the balance for a few days until it books on the
credit report and then we'll process the score and watch it soar!" Howe

"And once the facts have been revealed, it will by my sincere pleasure
to help Yoni and the others understand how to adequately report this
information for the benefit of the credit consuming population. I'll
help Yoni and the others perpetuate the correct information that will
help consumers rather than continue to confuse with word-play and
misleading information that, unfortunately, continues to make its way
onto major media sites without correction.

"To be sure, that's the desire and goal of the Credit Czar," Howe

Related: FICO Pro David Howe Seeks Obama Appointment as Credit Czar --

About SubscriberWise

SubscriberWise® launched as the first issuing consumer reporting agency
exclusively for the cable industry in 2006. The company filed extensive
documentation and end-user agreements to access TransUnion's consumer
database. 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 contributions to the communications industry are
quantified in the billions of dollars annually.

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