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Let's say that you have applied for credit with a lender that has a credit score cut-off of 660. Let's also say you have a credit score of 659. In this case, you would be turned down. However, your CreditVision score might add a few points if you've been regularly paying off or paying down your credit card balances. So, if your score were boosted to 665 you would get approved. And if your score is boosted well above the cutoff number, you could get a better offer such as a credit card with a lower interest rate.
Don’t worry. Your credit score won’t be affected
Both FICO and its biggest rival, the VantageScore, have said that they will not be incorporating this payment trend data into your credit scores. So while your credit scores won’t be affected lenders will be able to see how you’ve been handling your credit cards in the reports they get from the three major credit reporting bureaus. And you can bet that if you've been a "revolver" this will definitely have an effect on your ability to get new revolving credit.
Be a "transactor" and not a "revolver"
It’s always been best to pay off your credit card balances at the end of every month. When you don't do this and begin carrying balances forward you could easily fall victim to the power of compounding interest and end up in debt hell. But as you have read it's become even more important now to be a "transactor" and not a “revolver” as “revolvers” will have a harder time getting new credit and when they do it will have a higher interest rate. Making a late payment or defaulting on a credit card debt has always had a negative effect on your credit score and your ability to get new credit. This new payment trend data may also have a serious effect. While it's always best for your financial well being to pay off your debts on time, this is now more important than ever.