Trended Credit Data live, June 25th?
Fannie Mae is making more announcements on how they’re going to handle trended credit data.
Trended Credit Data live June 25th, The repositories TransUnion and Equifax have introduced the trended credit data on all credit reports, Experian has not. I believe that’s why Fannie is delaying the roll-out of the credit scores that include this information; FICO® 9 scores and Vantage 4.0
Starting June 26th Fannie will start integrating the new trended credit data live into their decision model using the old FICO® 5, which will create a bunch of unattended consequences that I will be at covering in a future video, for now I will give you three ways to beat trended credit data.
When you talk about trended credit data you have to think about what is included in that data set:
- What was your scheduled payment
- What payment was actually made.
- What was your current outstanding balance.
- What was your high balance on the account.
Trended Credit Data is going to look at those four factors that revolve around credit utilization. As I have said before 5 to 9% is where borrowers should aim for to keep their utilization rate, to score the most points available on credit cards.
What are three ways that people can actually beat trended credit data live?
- It doesn’t cost you anything to increase your credit limit, I would call my creditors (as long as they don’t pull a new hard credit inquiry)and ask for an increase in the high limit. Make it as high as they will allow, because trended credit data doesn’t care about how high the credit limit is, it just cares about how much consumers use. Consumers should remember to maintain self-discipline to keep their balances low.
- Installment loans will also have trended credit data. How can consumers improve their trended credit data profile based on installment loans? Installment loans by definition are a fixed payment amounts every month. What consumers could do is pay $1 more on their monthly payment toward principal. Hopefully consumer have the installment loans paying automatically, just pay one extra dollars every month. That way when trended credit data is considered, they will score higher when trended credit data is considered.
- The most important way to beat Trended credit data is to pay before the reporting date! I talked about this before and it becomes critical that consumers find out when their reporting date is and make sure they keep their balance low, (five to nine percent if you can) as low as possible before the reporting date. The reporting date has never been more important.
How can you find out your reporting date?
- Call the creditor and ask, when do you report to the repositories?
- Consumers can also check what the creditor tells them by going online everyday and looking up their current credit card charges. When the current charges are no longer there, the day before that is a reporting date, when all the current charges are all gone and on the previous statement. Then that previous day was the reporting date. Then consumers will know in the proceeding months that the reporting date will be about the same date every month in the future.
Remember you can go out to my website www.getloanready.com and get six steps to a better credit score and paying before the reporting date is in there. You can get the six steps to a better credit score for free all you have to do is subscribe at www.getloanready.com
Trended credit data live, and Fannie Mae is making more announcements on how they’re going to handle trended credit data.
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
FICO9 Trended Credit Data included?