High achievers deserve credit
- Fair Isaac Corp. refers to individuals who have a credit score of 785 or higher as “high achievers.” ” Here are some of the characteristics of high achievers:
- Between closed and open credit cards, their average number of credit cards is seven.
- On average, they have four credit cards or loans that are past due.
- Among high achievers, one-third have non-mortgage account total balances exceeding $8,500, while the other two-thirds have balances below that amount.
- Ninety-six percent of top achievers have no instances of late payments on their credit report.
- They seldom open new accounts. Their most recent credit account was opened 28 months ago, and their oldest credit account was opened an average of 25 years ago. Overall, their average credit account is 11 years old.
- Source: Fair Isaac
He also is a financial paradox:
* He and his spouse commuted 16 miles each way to work for years—she to Euclid, he to downtown Cleveland—partially to save money on parking in the city and to avoid accruing miles on a second vehicle.
Nevertheless, the couple owns seven cars, including a 1958 Corvette and two British sports cars from the 1960s. Every one of their standard cars has $100 annual vanity plates. “Eat Hot” and “Eat Heat” demonstrate their love of spicy cuisine. ).
* The Palvelkas have a 65-inch television, but they do not have access to high-speed Internet or high-definition cable.
* They eat out frequently at nice restaurants and take pride in their collection of vintage red wine, but their frequent vacation spots are Columbus, Chicago, Pittsburgh and Niagara Falls (Pittsburghs “very eclectic Mattress Factory Art Museum is must-do,” he said.)
The couple’s sole child, Freddie, is a shelter cat, and Tom Pavelka, an assistant district director at the Department of Labors Office of Workers Compensation in Cleveland, is certain that part of his ease with money management is due to this. They can easily charge several thousand dollars to a credit card and pay it off the following month.
But it takes a little bit more than that to have an almost perfect credit score. Even though the couple has a comfortable lifestyle, anyone can spend more than they have. They dont.
He has a few simple rules:
1. Never charge something without having something to show for it.
2. Never spend money without knowing when you can repay it.
Contrary to popular belief, having no debt does not automatically translate into having a high credit score. Your payment history plays a role in determining your credit score. If you have never had debt, you have never been able to pay it back.
The Pavelkas actually have four years left on their mortgage, an equity line that he typically uses to purchase cars and then pays off, four credit cards with amounts due this month (they pay their bills in full each month), and eight credit cards totaling more than $120,000 in available credit.
Pavelka and his wife werent always so well off. His father passed away when he was just one year old, and he was raised by his single mother in Cleveland, off Buckeye Road, along with his brother. The three relied on Social Security and VA death benefits to live in the upstairs of his grandfather’s home. Helga, his Austrian immigrant wife, also had a strict upbringing.
Thanks to work-study, Pell grants, financial aid, and scholarships, he was able to attend University of Notre Dame in Indiana. Initially, he intended to major in math, but he felt that was too theoretical. He then changed to philosophy with the intention of attending law school. But he wasn’t interested in returning to school after graduating in 1978 and landing a $10,000-a-year job at the Veterans Administration because he was so enthralled with the idea of actually having money.
While Pavelka was single, he claimed to have always handled his finances sensibly, though he did occasionally have credit card debt. “My wife kind of kicked me in line,” he remarked after they were married in 1987. He claimed today that his wife still has the final say over his “fun” purchases. Once, in 2005, when he purchased a Harley, he disobeyed her. He remarked, “To her credit, she was more concerned about my safety than cost.” “So, even though I had a 20-year motorcycle endorsement, I still completed Harley’s Riders Edge training program.” “).
More from Tom Pavelka
Pavelka recently went shopping at Bass Pro Shop outside of Toledo, where he learned about his excellent credit score. Since Pavelka loves to hunt, the store was having a sale on some gear. Additionally, the store would cover your sales tax if you used a Bass Pro credit card, which would have added up to more than $50 for his large purchase.
Pavelka quickly discovered that he lacked a Bass Pro credit card. They invited him to apply for one. Theyd give him 10 percent off. Well, why not? He was given a $6,500 credit line right away.
He used his new credit account to cover a portion of the purchase and Bass Pro gift cards that he purchased at Giant Eagle (during a double Fuel Perks promotion) to cover the remaining balance. Using his BP Visa credit card, which offers him gas rebates, he purchased the gift cards.
He received his credit score disclosure two weeks later, which was 848 out of 850. The letter stated, “In general, the higher your score, the more likely you are to be offered better credit terms.”
What is a credit score?
A credit score is a three-digit number that indicates your likelihood of not falling behind on payments based on a variety of factors such as length of credit history, amount of debt, and payment history. Higher is better.
The most well-known and frequently used score by lenders, FICO, ranges from 300 to 850. Anything above 720 is an A. About half the population has A-minus or better credit. In the past, roughly 10% of people have an 800 or higher. Approximately 25% of customers give products a C or lower.
To check your credit history, go to annualcreditreport.com It is free once a year from each of the three credit bureaus only if you go through this site. Or you can get it free by calling 1-877-322-8228. Or send a request with your name, Social Security number, date of birth, mailing address and previous mailing address (if current address is less than two years old) to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281
Your credit report, however, does not include your credit score. You must pay to get that, generally $8 to $10. Instructions are included when you get your free report. Use Equifax if you’re reviewing your report and score for the first time in a while.
Pavelka isnt sure what the other part of the letter means, that his score is “higher than 100 percent of U.S. consumers.” Fair Isaac spokesman Anthony Sprauve said it does not mean he has the absolute highest score in the nation. There are other 848s, and even 849s and 850s out there. But his score is higher than perhaps 99.7 percent of consumers and the disclosure letter simply rounded up. Cleveland credit guru Jay Seaton, president of Consumer Credit Counseling of Northeast Ohio, said its possible Pavelkas near-perfect score was the ultimate alignment of the planets. If someone had checked his score a week later, or today, it might be only 835. Or it could be 849. Credit scores swing slightly on what bill you just paid or what you just charged.
Seaton commented, “Maybe it’s not a needle in a haystack, but it’s close,” and continued, “What fascinates me is that he is living the life he wants to live. But he has sense. That gives you a score you can be proud of. “.
Despite the fact that banks have been kind to Pavelka, he enjoys taking shots at them. He naughtily remembers a period in the 1980s when he was unable to get real payoffs for his credit card debt, complete with interest. He was a math major, so he did the calculations himself and purposely overpaid by one or two cents. Because of this, the businesses were compelled to keep mailing him paper statements and covering the cost of shipping in order to display his credit balance.
He also chuckles at the numerous credit card offers that his deceased cat, Roxie, received after her name was used in a Toys R Us promotion.
Griffin of Experian said Palvelka is a testament to the advice the credit bureaus frequently cite: “Dont worry about your credit scores. Worry about managing the credit you have and worry about your credit history. If you do that, the scores will take care themselves.”
Palvelka understands that when he leaves the almost 90-person office he helps manage in two months, his expenses might go up a little. His 58-year-old hematology supervisor wife will still be working for a while before retiring, so she won’t be able to keep an eye on his car purchases and hunting passion.
Palvelka is adamant about one thing despite his love of rebates and amazing deals, his 2-year-old Droid, and his used Rolex:
“I dont like being called frugal,” he said. “I like to spend money. I just do it wisely. “.
On Twitter: @teresamurray
FAQ
Can you have a 900 credit score?
You can no longer obtain a credit score of 900, even though earlier credit score models could reach that high. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Has anyone gotten a 850 credit score?
As of April 2023, about 1. 7% of the U. S. scorable population had a perfect 850 FICO® Score.
Who has had the highest credit score?
However, he possesses an additional asset that the majority of people would sincerely desire: a credit score that surpasses that of nearly everyone else in the nation. Pavelka, 56, has an 848 out of 850 credit score.
Has anyone got a credit score of 1000?
Since 300 to 850 is the standard credit score range used by VantageScore and FICO, a credit score of 1,000 is not achievable. Other credit scoring models have a maximum score of 900 or 950, but only certain financial institutions use them and they are industry-specific.
Read More :
https://www.cleveland.com/business/2012/10/westlake_man_has_one_of_the_hi.html
https://www.usatoday.com/money/blueprint/credit-score/what-is-the-highest-credit-score/