@marty56wrote:
Wow. IMHO so many CC's overflowed the FICO score formula so that is how he was able to do it.
I agree with this. After so many applications, your inquiries fail to compute... a secret that has been known to the credit gaming community for decades, now.
I would suspect that a similar redundancy occurs with the overall number of tradelines on a given credit file.
The big three credit bureaus designed their systems to handle millions of people, that typically have 2 major credit card accounts, and perhaps a handful of retail store accounts. So, they didn't plan on gamers accumulating insane amounts of credit; certainly not versus modest income.
Credit scoring also reportedly breaks somewhere after 50k on a single credit line. I'm not sure what it is, but there are other users here that have high limits, and have reported their utilization disappearing entirely, after a certain upper limit.
From a financial soundness standpoint; acquiring credit limits that are several multiples of your annual income... is quite risky, in terms of potential for total default. I would say that credit reports are probably somewhat deficient in handling the scoring of high limits. The failure is the simple fact that credit scores don't factor in the most important basis for repayment - income.
So, if you have high income, than it's fine to have high limits.
If you have low or modest income... than, aquiring lots of credit is nothing more than an accident waiting to happen.
Liao most likely came from money, or at least his parents went to ivy league schools, and acquired a good deal of rep with large banks. The kid was probably put on many seasoned accounts - another credit secret; and thus, benefited immensely from the history.
After that, he probably used a few techniques that take advantage of slightly delayed credit reporting systems, and just snowballed the rest, from there.
