The Perfect Score

[Trudy]

Was just having a conversation with a friend regarding obsessing over the perfect score.  Sent him this link from a couple of years ago.  It was a good re-read.

https://www.bloomberg.com/news/features/2017-08-14/obsessives-have-cracked-the-perfect-fico-credit-s...

[Anonymous]

I was surprised that one of the guys who spoke with the reporter was so open about what he did, which sounded like it was treading on the line of attempting to defraud CC companies.  It sounds like he cooly planned to charged a lot on four cards, stop paying them, and carefully negotiate for a much lower payoff when they reached Day 175 late.  (The reporter describes him as "plotting out a high-stakes strategy" and using at Day 175 "well-rehearsed tales of woe" on the phone with creditors.)  The guy had no problem giving the reporter his first and last name and it also sounds like his current state of residence.  If I were that guy I'd be prepared for someone to knock on his door from the DA's office.

The little table of advice they give at the end is largely sound, except for one odd thing:

Avoid opening store cards, since that will lower your average age of accounts

The implication is that opening other kinds of accounts has no effect on your AAoA, which is of course not so.

[Trudy]

Yes, it does seem a bit too revealing. And the statement you reference, a bit misleading. 

Not that I'd ever want to apply that strategy but was not aware of the "accounting" rule of bad debt at 180 days.  Not even sure what the "accounting" rule is as this is my field (not an accountant) but I understand reserving the amount for bad debt at that age but not auto writing off as is implied in the article by stating "require" and seemingly all CC companies do this.

[Anonymous]

Thank you for sharing. It was a good read. I'll never make 850. I have one score over 800, but I don't have a mortgage (PIF), no student loans (Paid as I went),  and a car loan of under $25 that the final payment is due in August. Then I drop under 800.

[Trudy]

Well corpcrmgr,

Sounds like you're winning......  I'd take a home PIF over 850 any day.  Hoping to be there in the next 7-8 yrs.