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John Ulzheimer
Works at The Ulzheimer Group
Attended University of West Georgia
Lived in Atlanta
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John Ulzheimer

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John:  Regarding your article about carrying a credit card balance may or may not help your score does not warrant a study was an extremely ignorant statement fort  somewhat known "guru" in personal credit financing.  Please recognize that I did not refer to you as ignorant just that simple AND single statement.  

The fact of the matter is that the various bureaus and their different algorithmic scoring models not only differ greatly in this matter, but can differ to the tune of well over 50 points from this and similar examples:



5 CARDS

LIMITS 3K TO 25K  
TOTAL LIMIT 
3
10
12
20
25

70K TOTAL


AT 35K the numbers are obvious and we are at a 50% utilization ....

Of course, an I hope you have used a minimum of 6 different score simulators.

ANOTHER IMPORTANT POINT


If the credit agency that pulls the credit for GMAC MORTGAGE OR AUTO .. whatever .....


If they do not also work directly with a lender that has the ability to also work DIRECTLY with the borrower, such that rapid rescoring (A process in which while trying to buy a home Ms. Jones has a credit score of 677 mid score and her Interest rate is quite high due to the particular card utilization rate (not the total utilization - just the "capital one balance" divided by "capital one limit" being at 98% makes such a significant difference - In some cases, I have only seen 100% and over limit numbers cause this ... this can ACTUALLY CAUSE THE ENTIRE LOAN TO BECOME DENIED USING THE STANDARD DU FANNIE MAE UNDERWRITING SYSTEM)

Back to the carrying zero balances ... In the same scenario if Ms Jones carried an 80% across the board and then paid everything down to 0% and there were no payments required for 2 or more months - MANY, and apparently not all according to that one fact you cited - however, you may have extrapolated the increase in borrower risk buy a few fold when you directly relate it to stating that one with simply $10 dollar balances or there about, with limits such that it is always under 10% and preferably 3-4% ..... it is fact that at least three major housing lenders will show a lower score for the individual who has had a zero balance on every single card for multiple months instead of near zero usage percentages and 


 CLEARLY CONSISTENT PAYMENT ROUTINE GREATER THAN THE MINIMUM PAYMENT ON TIME AND NEVER ALLOWING THE TOTAL OR INDIVIDUAL UTILIZATION RATE TO INCREASE OVER A PREVIOUSLY ESTABLISHED % EXAMPLE.




IF YOU BUY A $38 ENSURE CASE OF NUTRITION DRINKS FORM YOUR MOTHER EACH MONTH AND PAY IT LEAVING 4 DOLLARS ON A $3,000 LIMIT CARD AND THE SAME WITH OTHER CARDS KEEPING FIGURES ABOUT HE SAME - THIS WILL ABSOLUTELY HAVE A MORE POSITIVE IMPACT THAN IF SOMEONE HAD AN OVER 50% AND PAID IT ALL TO ZERO AND HAD IT AT ZERO FOR THE 


AND THIS IS WHERE MY NON SCIENTIFIC STUDY DID PROVE THAT ... DESPITE BOTH ACCOUNTS HAVING 11 MONTHS OF NO MISSED PAYMENTS AND THE CARDS WITH ZERO BALANCES HAD ALMOST ZERO PAYMENTS WITH THE EXCEPTION OF A COUPLE ANNUAL FEES -

THE "B" TESTERS ..... MADE 11 MONTHS OF PAYING NEARLY THE FULL BALANCE OFF ....



REASON BEING ACCORDING TO THOSE THAT ONCE SAT BEHIND THE CLOSED DOOR WITH THE CREDIT ANALYSIS FOR U.S. CITIZENS HANDBOOK (8K PAGES ... WOULDN'T EXACTLY CALL A HANDBOOK LOL) ....

AND THEY FOUND WHEN SOMEONE WAS SHOPPING FOR A NEW LARGE TICKET ITEM ... OR SOMETIMES JUST ANY NEW CREDIT LINE -- 


IT MAKES THE BORROWER WHO SEEMS TO NOT HAVE KNOWLEDGE OF TIMELY AND CONSISTENT USAGE OF CREDIT PAYMENTS IS "STATISTICALLY MORE SIGNIFICANT' TO END UP WITH CARDS 
1. MAXED OUT, LATE PMTS, CHARGE OFF
2. REPEAT OF THE ABOVE AND THEN HAVE THEM PAID OFF (people using credit to buy a home in cash by over extending their credit thinking they can  ... ill just leave this blasphemy of an example of their findings at that 
3. DECLARED BANKRUPTCY WITHIN 5 YEARS OF THE 11 MONTHS OF ZERO PAYMENTS DUE TO ZERO BALANCES - "TENDENCY TO USE ENTIRE CREDIT PORTFOLIO DURING TIMES OF NEED VS THE OTHER GROUP PRIVY TO PROPERLY USING THE CREDIT SYSTEM WERE 2.1 TIMES LESS LIKELY TO FILE BK IF THEY MADE 11 PAYMENTS KEEPING U RATE BELOW THE SELF SELECTED 3-5
%


Just wanted to let you know of that because I have come across a half dozen real people that have spent their middle years to nearly their 70s never touching the cards, som ecards end becoming CXLOSED BY GRANTOR have dozens of those examples .... AND they did not know why carrying a zero balance across the board is only in the high 7s when their neighbor with identical trades, inquries, and i understand that hundreds of interactive elements that make up a single variable in the algorithms

was in the 830s




JUST SOME FOOD FOR THOUGHT!
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Have him in circles
115 people
Deb Anderson's profile photo
Walt Folker's profile photo
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James Mather's profile photo
James Hobson's profile photo
Todd Gregory's profile photo
Mervyn Northe's profile photo
PSL BRAG's profile photo
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Work
Occupation
President of The Ulzheimer Group - Provider of credit related content, expert witness services and expert witness training
Employment
  • The Ulzheimer Group
    Owner, 2004 - present
  • SmartCredit.com
    President, Consumer Education, 2010 - present
  • Equifax
    Manager, Business Development, 1991 - 1997
  • Fair Isaac
    Manager, Consumer Services and Global Credit Bureau Scores, 1997 - 2004
  • Credit.com
    President, Consumer Education, 2004 - 2010
Places
Map of the places this user has livedMap of the places this user has livedMap of the places this user has lived
Previously
Atlanta - San Antonio - Jacksonville - Montevideo - Fort Rucker - Monterey
Story
Introduction
Nationally recognized consumer credit expert.  Deep expertise in credit reporting, credit scoring and credit related law.  Formerly of Equifax, FICO and Credit.com, John is the only recognized expert who actually comes from the credit industry.  John has been an expert witness in over 100 consumer credit related lawsuits representing both the credit industry and consumers.
Bragging rights
Most quoted individual in the credit industry with over 2,000 media interviews and quotes since 2007. John is published roughly 1.5 times each day by Mint.com, SmartCredit.com, CreditSesame.com and other sites.
Education
  • University of West Georgia
    Criminal Justice, 1987 - 1991
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Male
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