Over 200 million people in the United States use credit cards. And almost all these credit card users are going to run up a balance at some point. All of your account activity is going to be reported to the credit bureaus. However, what you do with your bill is a different story.

None of credit bureaus utilize a system that reports in real-time. When you use your credit card at Target, Target knows about the charge instantly as does your credit card issuer. However, the credit reporting agencies will not get info related to your account activity for 30 days. How come? The reason being is that the majority of creditors only report account information to the credit bureaus only once/month.

Consumers that pay off their credit cards in full every month are known as ‘transactors’. This means you usually pay your credit cards as soon as your bill arrives. Those that pay less than their full balances every month are known as ‘revolvers’. Revolvers select to let a portion of their balances carry-over to the following month. However, since creditors are only reporting once per month to the credit reporting agencies, the credit bureaus are unable to distinguish the dissimilarity between the two.

A revolver encompasses a balance the preceding month as a result of not paying the bill in its entirety. A transactor also maintains a balance the next month since they use their card while the statement is waiting to get paid, consequently creating a new balance with new charges. Although, the consumer has paid their prior balance in full, a statement is received the following month and it’s that statement’s balance that is going to be reported to the three major credit bureaus.

It would be extremely beneficial info for lender if the credit bureaus reported who is paying their balances in full every month and who is allowing a balance to carry over. One has the ability to settle their credit card debt every month, the other may not. Revenue created by one is substantial, while the other may not. All this information is extremely valuable for lenders. However, this info is not attainable from credit reports.

What is a FICO Score?
How Are Credit Scores are Computed?
Making Sure Your Credit Report is Accurate
How to Read a Credit Report  
Why You Should Run Your Credit Report Once a Year
The Impact of Inquiries on Your Credit Report
Correcting Your Credit Report - Writing a Dispute Letter - Sample Dispute Letter
Effects of Having Bad Credit
What are the Hardest Credit Items to Fix?
Credit Report FAQ
Things That Hurt Your Credit
How Long Do Negative Marks Stay On My Credit Report?






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