You’re a trend setter - own it!

Trended. Credit. Data.  Three words we may not have thought to put together, but here we are.  I was researching some details about the credit bureaus, and like all good research projects, I came across something I’d never heard of before.  I was familiar with the fact that credit bureaus issue credit reports based on consumer information and history.  And those credit reports are viewed by lenders to determine the creditworthiness of consumers.  However, I wasn’t aware that there is an expanded version of information that lenders could use to make lending decisions. 

There is a subset of consumers that have used credit on a limited basis.  One credit card, a single car payment and perhaps a low balance student loan.  Sometimes, even less.  When they have an opportunity to access credit, there is little for the lender to assess.  That’s where trended credit data is important.  Trended credit data widens the scope of information by looking at a consumer’s credit interaction for the last 24 months, instead of a single point in time like traditional credit pulls.  Trended credit data can include the following data points: balance amount, original loan/limit amount, payment amount, actual payment amount, and the last payment date over that extended time.  The history can go deeper to consider if the consumer paid over the minimum payment and how many times the credit limits increase or decrease.  What was a limited consumer credit file is now expanded. 

How does this apply to you?  The VantageScore 4.0 scoring model is used by Experian, TransUnion and Equifax and expects to expands the number of people that can gain a credit score by more than 30 million people, which means more consumers can potentially access credit.  The VantageScore 4.0 uses trended credit data to give a more detailed account of a consumer’s financial behavior.  You, as a consumer, can “set the trend” of using credit responsibly.  You are now armed with more information about how your use of credit can work for you – or against you.  You don’t need to go out of your way to obtain more credit, just use the open credit you have appropriately. 

You’re up, fellow Morpher!  Use this knowledge to your advantage.  50/70/100 principle.  Is it time to check up on your credit score and report?  Or time to get your credit house in order and set a better trend?  StudioM is here to help however we can.  Call, text or send an email.  letstalk@studiomfinancial.net or (469) 615-0387.  Until we meet, keep working on the change.