Big Changes May Be Coming to Credit Reporting

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There have been a few big changes coming down the credit reporting pipeline recently. According to a recent report by the Associated Press, three major credit reporting agencies will not only report if you pay your bills on time every month, but if you pay the entire balance when you do.

The changes took place in September when two major credit rating agencies — Equifax and Transunion — began offering a new product to lenders: “trending data.” That trending data gives lenders a more complete view of the way you handle you’ve handled your credit over the past two years, with details about exactly how much you paid on your accounts when you paid your bills on time.

And lenders may use the information to reward (or penalize) borrowers.

It’s the first time in 30 years that the standard information available on credit reports has been updated.

Currently this reporting is targeted to mortgage lenders who use them when considering you for a home loan. But as more credit reporting companies follow suit — Experian is expected to follow suit soon — this could be a change to credit reporting across the board.

Read more about the new changes here.

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