FICO Pulls Back Curtain on High Credit Scores

In the United States, a quarter of the American population has a credit score of 785 or higher. Over 50 million people have either figured out the secret to good credit or are really, really lucky. What do these 50 million people have in common? What do they know that the millions of Americans who have poor credit have not yet figured out? A recent study by FICO might hold the answer.

Looking closer at those prime credit consumers, their credit score has nothing to do with the amount of debt they are carrying. About a third of them have over $8,500 in nonmortgage debt. One in 9,000 has gone through a bankruptcy or tax lien. Around 1 percent of them have a collection account on their credit report. These customers are not necessarily perfect, but they still have stellar credit scores.

What gave these consumers an advantage? The biggest similarity between them was making their payments on time. Even the ones who had higher balances still had a tendency to pay on time. 96 percent of the group had zero missed payments listed on their credit report. If these consumers had any missed payments in their credit history, they happened so long ago that it is no longer listed on their report and affecting their scores. Overall, consumers with prime credit scores also tended to use a small percentage of their available credit, and as frequent readers will know, credit utilization has a huge effect on a credit score.

At My Credit Specialist, we want our readers to have the best credit score possible. Getting that prime credit score is tough, but we help you along the way with credit tips, consumer alerts, and our credit restoration services. To get the most out of My Credit Specialist’s services, be sure to like My Credit Specialist on Facebook, following My Credit Specialist on Twitter, and subscribing to My Credit Specialist on YouTube! If you want to learn more about our credit restoration services, go to http://www.mycreditspecialist.com and find out if it is the right choice for you!

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Thief Steals Bartender’s Credit Card, Tries to Buy Beer

At My Credit Specialist, we love reading about dumb criminals getting caught. There is nothing more satisfying than seeing someone try to break the law and fail miserably, and it never fails to bring a smile to my face when a credit card thief is caught by the very person they are trying to steal from.

Last week in Miami, 53-year-old David Weber broke into a car and took the owner’s credit card. He then headed to a nearby bar and tried to buy a beer with the card. As it turns out, real cardholder is a bartender, and he just so happened to be working at that bar. Better yet, he was the bartender who took Weber’s beer order.

Weber has been arrested and charged with credit card fraud and theft. Currently, he is in the Miami-Dade County Jail and claiming that he is innocent. He says that he did not steal the card but rather found it on the ground outside the bar. Personally, I don’t know which is funnier, the manner in which Weber was caught or the fact that he thinks finding the card makes it okay to use it. If you find a credit card, you don’t head to the local bar and buy a beer. You either report it or try to find the card’s owner.

For that reason, we are bringing back the Navin R. Johnson Award for David Weber. It doesn’t matter if Weber found the card or broke into a car and stole it. Using a credit card that does not belong to you is fraud, plain and simple.

You can learn more about responsible credit card use, protecting your identity, and improving your credit by checking out http://blog.mycreditspecialist.com and going to http://www.mycreditspecialist.com. Also, make sure to follow us on Facebook, Twitter, and YouTube.

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New Card Makes Rewards Programs Easier

Most Americans carry multiple credit cards, each with different rewards or cash-back programs. It can be near impossible to keep track of every single rewards program and all of its quirks and restrictions, so many people miss out on rewards that they should be earning. A new credit card promises to simplify the conundrum of multiple credit cards and help consumers get the most out of their rewards programs.

The Wallaby Card is a new service from Wallaby Financial. It is not a new credit card but rather contains every single credit card that the card holder has open. When someone swipes their Wallaby Card, the Wallaby Card sorts through every credit card rewards program, chooses the one that will earn the card holder the most rewards, and then charges the purchase to that card.

For example, let's say that John Smith has a Visa card, a MasterCard, and an American Express. He buys a cup of coffee with his Wallaby Card. The Wallaby Card determines that he will get the best rewards with his Visa card, so the card sends the payment to his Visa card. Later, he stops at the gas station to fill up, and he swipes his Wallaby Card again. This time, his American Express is the best choice because that card offers double rewards for gas purchases during the summer. All that John Smith has to do is keep up with his separate credit card bills.

Of course, the Wallaby Card does not come for free. New cardholders get six months of free usage, and after that, they pay a $50 yearly fee. Right now, Wallaby Financial is running a deal where the first 1,000 people to sign up for a Wallaby Card will get free lifetime memberships, and the next 5,000 after that will get a year of Wallaby Card service free.

After reading up on the Wallaby Card, I'm honestly surprised that no one had thought of doing it before now. Even with the $50 yearly fee, it is a fantastic service and will make life much easier for consumers juggling numerous credit cards. I have a feeling that those first 1,000 free lifetime memberships are gone, but if you want to get in on the free year, you can sign up on their website here.

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Don't Cancel Your Credit Card

A popular method of curbing spending is cutting up credit cards, but if you close those card accounts, your credit score could take a hit.

A large part of calculating a credit score is the consumer's credit utilization, or the amount of debt compared to the amount of credit available. The higher a consumer's credit utilization, the lower the overall credit score. By canceling credit cards, the consumer has less credit available, so their credit utilization shoots up and their credit score drops.

This “tip” should be common knowledge to anyone with a credit card, but somehow, the myth still lives on that canceling credit cards will help improve a credit score. Just last week, U.S. News & World Report mentioned it in their article “7 Weird Ways to Hurt Your Credit Score.” This is exactly why My Credit Specialist offers credit education blogs, videos, and other resources. Consumers clearly need this information. We even did a video over a year ago on prevalent credit myths, including why canceling a credit card lowers a credit score. These tips might be news to the readers of U.S. News & World Report, but our readers already have the tools to have a great credit score.

To keep up with the latest news and credit education from My Credit Specialist, like My Credit Specialist on Facebook and follow My Credit Specialist on Twitter. Also, go to http://www.mycreditspecialist.com to find out if credit restoration is the right choice for you.

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