Trended Data Gives Lenders an Expanded View of Credit History
Trended credit data, already used by other industries, provides lenders with a longer view (up to 30 months) of borrowers’ credit accounts and how borrowers manage revolving accounts such as credit cards. That is in contrast to the credit scores currently used in most lending decisions, which “do not distinguish between people who carry balances on credit cards and those who pay them off,” notes a recent article by Reuters.
John Ulzheimer, president of the Ulzheimer Group, calls trended data a “game-changer.”
“For lenders, it tells a much richer story about your relationship with your credit cards than what has traditionally been on your credit report. For consumers, it means how you manage your credit card accounts may determine whether you get a loan and what terms you’ll get,” he tells CreditCards.com.