Credit Bureaus Watching Card Use Over The Holidays
On behalf of Law Offices of Chad M. Hayward, P.C. posted in Credit Card Debt on Friday, December 27, 2013.
If you’ve been using your credit cards over the holidays, you might be interested to know that credit bureaus are monitoring card use during this time. If you have found yourself in too much debt, you might want to speak with a Chicago credit card debt attorney. The new information that credit bureaus will be collecting can help them determine who may be a higher credit risk. It will also identify who uses a card as a transactor as well, which is their term for a person who pays the balance in full most times.
Credit reports that are produced for lenders by TransUnion can hold up to 30 months of information on a person’s credit card payments. Previously, according to the Dec. 23 report, credit bureaus could only see a credit limit, a monthly balance and if the card holder made payments or missed payments. Now, they will be able to see payment amounts that will help them decide if a person is just making their bills or paying large balances in full. With this data, lenders will be able to manage risk better, but they will also have more of your personal information.
According to the Federal Reserve, Americans owe around $850 billion on credit cards alone. On average, this would equal around $15,000 per household with credit card debt. Some people hope that this change in credit reporting will help those who pay in full receive credit where it’s due, but others think that it may make it easier for credit card companies to create penalties for card users.
Source: The Detroit News, “Credit bureaus monitoring card use” Patricia Sabatini, Dec. 23, 2013