"Transactor vs. Revolver" new credit reporting for credit cards??

[Creditaddict]

Suze Orman says tonight that they are now going to put people in 2 categories on credit reports to show rather they are

1. "Transactor" - may not show it at time of credit pull but they pay in full each month

2. "Revolver"  - you are carrying your balances month to month - maybe 0% maybe not.

I have not seen anything else about this... it could be very good for those that are always playing this multiple payment game just to show under 9% util. etc.

[FocusedAndDetermined]

As soon as I read the subject, I knew someone else had to be watching the Suze Orman Show tonight.

Her position is that revolvers appear far more risky to lenders than transactors, and continuous revolving (especially constant BTs) is not good for optimal FICO score.

[Creditaddict]

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@FocusedAndDetermined wrote:

As soon as I read the subject, I knew someone else had to be watching the Suze Orman Show tonight.

Her position is that revolvers appear far more risky to lenders than transactors, and continuous revolving (especially constant BTs) is not good for optimal FICO score.

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yes but she seems to be saying that they are actually going to clasify you so a bank sees that when they pull your credit rather you are reporting a maxed out card or not if you are a person who pays in full... but I have not seen any other news about this.

[amakol]

Would be interesting. I know from pulling TU reports that the amount of data on there has skyrocketed since 4 years ago and it's all retroactive.

Everyone's becoming more aware, about everything it seems, nowadays.

[FocusedAndDetermined]

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@Creditaddict wrote:

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@FocusedAndDetermined wrote:

As soon as I read the subject, I knew someone else had to be watching the Suze Orman Show tonight.

Her position is that revolvers appear far more risky to lenders than transactors, and continuous revolving (especially constant BTs) is not good for optimal FICO score.

---

yes but she seems to be saying that they are actually going to clasify you so a bank sees that when they pull your credit rather you are reporting a maxed out card or not if you are a person who pays in full... but I have not seen any other news about this.

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I had a slightly different take, but to be honest, I missed the very beginning of the show.

In theory you could have a card with a $10k CL and a $1K balance, but if you keep transfering that balance to a new card, you aren't really reducing your debt. 

[CreditMagic7]

Heh. Interesting comparison.

I'm not a bit bashful in the way that i manage credit. I have particular cards that i always PIF. Then i also set aside chosen cards that by design i roll balances on. On the rollers i make a routine practice to revolve at 90 day intervals and deliberately pay interest for this 3 months to raise attention to those particular lenders. And draw some brownie points?

[youngandcreditwrthy]

I watched it too! I love Suze!!

I did some research. What she is talking about is how they report the payment amount versus the actual balance.

Transunion started reporting payment amounts in mid 2013. Nothing is changing that we don't already know about.

I know Amex specifically will not report the payment amounts, or at least that is what I have seen on my credit reports..Exp and EQ do it sometimes from what I've seen on my personal reports.

so again, she is just talking about how the CRAs report the actual payment amounts. Nothing is changing. FICO isn't changing it's scoring system, and it isn't even required that creditors provide the actual payment amounts. I'm a little curious as to why Suze even mentioned this as it isn't really that noteworthy for us. Alas though, we are a different group of folks.

I LOVE SUZE BTW! Dave Ramsey is a LOSER. LOL

[clocktick]

So creditors can see if we PIF even if it's not by the statement cut-off?  Some of mine always look like I'm carrying a balance even though I PIF each month. 

[youngandcreditwrthy]

That's EXACTLY correct clocktick. That's almost exactly what Suze said word for word!

I know TU reports payments made compared to balance paid.  Again, it's up to the creditor, and I noticed Amex doesn't report the actual payments.

if you do pay before statement cuts, that high balance and payment will report too.

For example,

I had a statement balance of $130 on Walmart Discover, and I made 550 in new charges. I paid the statement bal plus the new charges before the next statement cut to make it report a $0 bal, so my total payment reported was like $680, and it reported at zero.

Honestly, most  Credit Analysts prob don't even know to look for this. Again, it is not required by any law or regulation, so the effect is dismal. If you are carrying balances, it's still obvious that you're carrying balances. I carry balances on some cards and pif most others.

Your FICO, however, will still be affected even if you are pif but a balance reports. I hope all of that makes sense.

[clocktick]

Yep, makes perfect sense.  I wish I watched Suze last night, I really like her show!  I pulled my TU last week for the first time in a long time and noticed all of the differences and added details.  Still seems like they weren't "caught up" but there were definitely more details.