Trended Credit Data: Making the Difference

Trended Credit Data: Making the Difference

Beginning June 25, 2016, Fannie Mae’s underwriting process will require trended credit data!

Trended credit data is a detailed record of a consumer’s credit history throughout their life. It includes the historical payment amount for each month going back 30 months under TransUnion’s CreditVision or 24 months under Equifax Dimensions. Experian is expected to follow suit, but later; possibly starting early 2017.

Since the credit scores currently offered by FICO and VantageScore do not consider trended credit data, it’s unknown how this “trended data” will impact underwriting.

How You Fit Into This

Are you a “transactor” or a “revolver” when it comes to your credit and mortgage application? If you don’t know what we mean, you’re not alone; not many people have ever even heard of these terms in regards to credit/mortgages. Here’s a brief explanation.

  • Transactor: This is someone who pays off credit bills in full every month or makes more than minimum required payment – the kind of person who mortgage companies are more than happy to give a loan.
  • Revolver: This person is quite the opposite of the transactor. They pay the minimum required payment on credit cards and other debts, rolling balances over to the next month, month after month.

Until now, mortgage lenders had a hard time telling these two kinds of people apart. Credit reports told them whether you were late on card payments, but they did not show what you paid on your balances month by month or the amount you were paying over extended periods.

Credit scores and credit data directly affect your chances of qualifying for a mortgage loan and purchasing your dream home. If your credit score isn’t as stellar as mortgage lenders would like, all is not lost! Contact Andraya Coulter for all of your home loan needs in Walnut Creek and all of California and Texas.

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