So what exactly are people talking about when they talk about trended credit data?
With all the commercials on TV people are aware that almost every adult has a credit score (check out our credit score infographic post). But not many people are familiar with “Trended Credit Data”. It’s a different look at much of the same information that goes into your credit score. MGIC shared some valuable information with us about trended credit data that we want to pass this info onto you.
“Trended credit data determines how individual consumers use credit.”
Credit reports evaluate consumer credit history, based on monthly factors such as the amount of credit card debt, the minimum payment amount and whether the payment was made.
The “Trended Credit Data” is a much closer look at how consumers are paying revolving credit balances each month. The data focuses on things like the use of reward points, balance transfers, and monitoring if the minimum payment is made.
the MGIC article defines 6 types of trended credit data users:
- Transactors — Pays credit card balances in full every month
- Revolvers — Usually pays minimum balance
- Rate surfer — Transfers balances
- Consolidator — Transfers multiple credit card balances to one credit card or a consolidation loan
- Nonactivator — Opens credit cards, yet rarely uses them
- Seasonal user — Uses credit cards at specific times of the year
More About MGIC
MGIC Connect (www.mgic-connects.com) is a Mortgage Industry Blog created by MGIC (Mortgage Guaranty Insurance Corporation), shares mortgage information with Brokers like Burke Mortgage to help educate those looking to enter the real estate market by purchasing their first home.