How you pay your bills may affect your credit

1436536219414Lenders are no longer just interested in whether you pay your bills or not. Increasingly, they are looking at how you pay those bills to determine whether they want you as a customer.

Credit reports now show if you regularly pay your credit cards in full every month – making you a low-risk “transactor” – or if you are a higher-risk “revolver” who carries a balance.

Some lenders use the information to determine what types of credit cards and loans to market to people, while others are starting to use the distinctions in decisions about whether to grant credit at all, as well as what rates and terms to offer.

In my latest for Reuters, a look a how lenders determine what type of risk category you fall under.

As the strongest-ever hurricane barrels toward Mexico and its remnants are forecast to bring more rain to an already flood-weary Texas, homeowners and renters should take a moment to review their coverage against the damages Mother Nature can inflict. In my latest for Moneywatch, the five things you need to know about disaster insurance.

Also in Moneywatch, the IRS has announced the retirement plan contribution limits for 2016.

Finally, in my latest for BankRate, a look at when it’s worth it to refinance a mortgage.

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Comments

  1. GOOD! IT’S ABOUT TIME THE PAYOFF STYLE GETS INCLUDED IN OUR RATINGS! I ALWAYS PAY OFF IN FULL ~ AND EVEN BEYOND SOMETIMES.

    IT IS HANDY TO PAY THE CARD IN FULL AND ALSO INCLUDE RECENT CHARGES NOT YET SHOWING UP ON THE STATEMENT. I EVEN ROUND UP TO THE NEAREST $100. THAT WAY THE NEXT BILL WILL BE WHOLEY “NORMAL” TO ALSO PAY IN FULL. OR NOT HAVE TO PAY AT ALL IF IT’S ENOUGH TO COVER THE NEW CHARGES.

    DON’T BLAST ME FOR NOT “FLOATING” MY CASH. ~ AS IF WE GET INTEREST ON OUR CHECKING ACCOUNT BALANCES ANYWAY…..

    AS CHRISTMAS APPROACHES I CAN USE MY CC AS A MINOR SAVINGS ACCOUNT SO THAT BY JANUARY 1ST I CAN RECEIVE A CC STATEMENT OF ZERO