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How you pay your bills may affect your credit 

October 20, 2015

Liz Weston, Reuters

Lenders are no longer just interested in whether you pay your bills or not. Increasingly, they are looking at how you pay those bills to determine whether they want you as a customer.

Credit reports now show if you regularly pay your credit cards in full every month - making you a low-risk "transactor" - or if you are a higher-risk "revolver" who carries a balance.

Some lenders use the information to determine what types of credit cards and loans to market to people, while others are starting to use the distinctions in decisions about whether to grant credit at all, as well as what rates and terms to offer.

Separating transactors from revolvers has become "the hot credit report attribute du jour" for lenders and researchers, said credit expert John Ulzheimer, who has worked for credit scoring company FICO and credit bureau Equifax.

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