Trended Credit Report Example. Fannie Mae’s new tool.
I want to talk about is trended credit reports. Fannie Mae has been working on trended credit reports for two years now. In the past when consumers make their payments on time and that is all that is recorded on their credit profile.
In the past, the repositories only recorded if the payment was on time, they did not record any other information. The repositories didn’t record how much consumers owed, what was the high credit, if they paid more than the minimum payment. This is what trended credit reports will include in the future.
Trended credit reports will create less fluctuations in credit scoring. Consumers will have a more consistent score although people who have a bad credit habits, will not be able to quickly turn it around. They will no longer be able to quickly improve their scores through paying down their credit utilization ratio right before they apply for a loan.
Trended credit reports will look more closely at how consumers really paid the past, not just before the application anymore and depending on the reporting date consumers could wind up hurting their score by paying their bills on the due date.
The reporting date is the date the information from the creditor is sent to the repository it is different with every creditor. What consumers can do is watch their statements and a lot of times they will be able to find that online. Consumers should review their credit card statements daily. They should watch the current charges has a month goes by. The day that all the current charges are gone and on the previous statement the day before was the reporting date.
The reporting date is the date the information goes from the creditor to the repository it will normally be the same as the statement date. If someone’s bills are due on the 15th and their statement date goes on the 3rd every month. That consumers could windup showing a higher balance even if you’re paying on time. Consumers should keep their balances as low as possible every month prior to the reporting. That means that when consumers pay their bills every month will become even more important when considering Trended credit reports.
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