LOS ANGELES--(BUSINESS WIRE)--SubscriberWise, the largest issuing CRA for the communications industry and the nation’s leading advocate for children victimized by identity fraud, announced today clarification and correction of national news stories recently published by the Los Angeles Times, NBC News, and Bloomberg. The correction involves a credit 'misconception' reported by the news organizations which has the potential to misinform consumers without further and substantial clarification.
According to Los Angeles Times story “Many Americans are unaware of the costs of bad credit, survey shows” (http://www.latimes.com/business/la-fi-bad-credit-20170526-htmlstory.html), the statement “About 40% think carrying a small balance on credit cards helps a person’s scores” was reported as a common misunderstanding. In fact, carrying a small revolving balance - without necessarily paying interest - does help consumer credit scores. Moreover, according to the credit czar, it's impossible to obtain the maximum 850 FICO score without having at least one revolving (credit card) account with a favorable utilization (small balance), among other 'Fair Isaac Leaves', reported on a consumer report at the moment a score is generated.
“Unfortunately, the claim that there is no advantage to carrying a balance over to the next month is oversimplified as reported,” said David Howe, SubscriberWise founder and FICO Certified Pro. “Worse, among the most common scoring scenarios, including the industry-dominant FICO Score 8 model, it’s an entirely inaccurate statement.
Watch Howe explain the impact of not carrying a small credit card balance at the time a credit score is generated (start video presentation at 5:28)
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 is a U.S.A. federally registered trademark of the SubscriberWise Limited Liability Co.