More Credit Card Debt Info is Being Put on Credit Reports

Florida consumers may be surprised to learn that in the last year, the three credit bureaus have starting adding payment histories to credit reports. They are doing so in an effort to give lenders a better picture of a consumer’s credit card debt. For now, this information is not affecting a person’s credit score, but that could change in the coming years.

Consumers are basically separated into two categories — revolvers and transactors. Revolvers are consumers that carry a balance from month to month on their credit card debt. Transactors are consumers that pay off their credit cards at the end of each month.

Credit bureaus claim this information will help credit card companies better tailor their credit offers to individuals. The information can also be used to provide additional information regarding a consumer’s credit risk. Obviously, the less the credit risk, the better the offer a consumer will receive.

There are some, however, who believe this information could be used against some consumers. For instance, consumers that pay off their balances at the end of each month could be assessed fees in lieu of interest charges. It may take some time before the true value of the information is known.

This information may be helpful for people who are in control of their credit card debt, but it does nothing for people that struggle with their debt each month. Most Florida consumers have every intention of paying their debts, but sometimes, life’s circumstances make it simply impossible. Filing for bankruptcy protection can help alleviate the burden and stress that overwhelming amounts of debt can cause. If the debts are discharged, the filer will have a clean slate with which to move forward and rebuild his or her financial life.

Source: post-gazette.com, Credit bureaus taking closer look at how you use your credit card, Patricia Sabatini, Oct. 31, 2013