Consumer Reporting Agencies recently changed the way it reports credit card payments in order to identify “revolvers,” card holders that routinely carry an outstanding balance on their accounts. As explained by Money Talks News:
“In the past, your credit file displayed your monthly balance, your credit limit and whether you failed to make at least the minimum payment,” CreditCards.com says. Now Equifax, TransUnion and Experian are listing historical payment data — the amounts you actually paid, going back as far as two years ago.
The new information will tell lenders whether you’re the type of consumer who carries a balance from month to month and racks up interest charges — a “revolver” — or the type who usually pays in full, the Pittsburgh Post-Gazette says. That, in turn, helps lenders know how risky you are, and could affect the credit offers you get.
What it won’t do, at least for now, is affect your credit score, the Post-Gazette says. Anthony Sprauve, spokesman for the widely used FICO score, says it will take time to see if the new data reliably predicts whether people pay their debts.