2017 Trended Credit Data Update

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This week we’re going to talk more about trended credit data in 2017. Trended credit data is really huge in the credit industry. People don’t realize it is has been around for going on six months and it impacts everyone who applies for a mortgage right now.

Originally Fannie and Freddie were talking about upgrading the FICO® scoring model to FICO9®. I think they didn’t do that because Experian® was not ready in the fall of 2016.

What’s kind of interesting about this move by Fannie integrating this into their automated underwriting. Then not using the FICO score that includes trended credit data. This means that FICO scores will become less relevant to the mortgage process until they update to FICO9.

How individuals pay their bills is going to become more important. Imagine two future home owners both with 650 credit scores. One person might get approved and one person might get denied based on their trend credit data.

How you pay is going to be very important and I want to talk a little bit about what trended credit data looks at;

High credit

Balance

Scheduled payment

What was paid

People may feel like credit scoring is rigged, but it’s not rigged. They just need to know how the system works and by listening to be right now to tell you how to beat it. How should you address trended credit data? It’s not glamorous, consumers should still paying their bills on time and keep their balances low.

Here is a few extra things they can do; Review their credit cards and call them up say hey I’ve been a loyal client of yours for a long time I’d like the credit card company to increase my balances. They should ask to have the credit limit raised as high as the credit card company will give it to them, If they will give them a twenty-thousand-dollar high-limit take it.

Although, only if they use it responsibility right? they have to be disciplined, they should not be going out to the club every night and say “put it on the card”. They can’t do that. If the balance is raised up that high it will help their trend credit data profile. Trended doesn’t look at how much is a limit is, it just looks at how much do they use. If they use their credit card like they did before the increase it will appear to trended that they are using their credit effectively. The other thing that becomes very important is paying credit card balances before the reporting date. Paying balances before the reporting date is going to be critical because that’s when they report all of the information trended credit data uses.

2017 Trended Credit Data Update

2017 Trended Credit Data Update

2017 Trended Credit Data Update

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If  you are a mortgage lender please share this on your Facebook or LinkedIn page.   If you have any questions, leave them down below I’d be happy to answer them.

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Go to www.getloanready.com to find other ways to improve your credit score. I’m Dave Sullivan here for the credit guy TV so you with a little bit me we’re going to change the credit industry thank you

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Comments

2 responses to “2017 Trended Credit Data Update”

  1. Bob Schwab says:

    How would I know what the reporting date is? Can the creditor tell me?

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