May 4th, 2017

Tracking credit trends

Posted by at 12:54 pm

  Opinions differ on credit scoring’s new trend toward “trended data” – where borrowing and making payments on your credit accounts is carefully tracked over time. The nation’s leading credit reporters – Equifax, Experian and TransUnion – are switching to the VantageScore trended data system this fall. Meant to provide more context to debt load, it’s supposed to give lenders a more holistic view of a person’s credit behavior. Mortgage-backing giant Fannie Mae already requires underwriters to use trended data when assessing home loan applications. Historically, credit card reports only contained the balance, the amount of available credit and if a borrower was making payments on time. Before trended data, some credit users could “game” the system, by opening more credit cards, and not using them. By keeping utilization low and paying bills on time, scores would improve, regardless of the amount...
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