Credit reports and scores can be very useful information for people, including those in Tennessee, who are looking to open a line of credit and for companies who provide credit services. A recent change in credit reports may have gone unnoticed by some but could potentially have a significant impact on how credit providers approve their applicants. A more in-depth report including how a person manages their credit card debt and how they handle their payments could have both positive and negative effects on credit card holders.
The recent change now has the amounts a person pays toward their credit card bills each month listed on their report, which could mean a great deal to credit services. They could now have the ability to determine which consumers are more likely to keep a balance on the card and which are more likely to pay off their balances in full. By being able to offer the right type of rewards and promotions to the right consumers, credit card companies are more likely to appeal to those consumers and in turn create more accounts.
This change could have a negative impact on those who typically pay off their bills, however. The credit companies could devise a way to charge fees to those who typically do not maintain a balance in order to make up for their lack of interest payments. If this were the case, the normally responsible credit users could find themselves in situations where they are spending more money in fees than they had before, which could result in a difficult financial situation.
If a person does not monitor how changes in credit card company policies affect the consumer, their credit card debt could quickly become unmanageable. They may find themselves in the stressful situation of determining how they are going to pay their bills every month. If a person does find themselves in such a situation, they may find looking into Tennessee bankruptcy laws beneficial. Bankruptcy has several options and was designed to help those struggling financially to get a fresh start.
Source: Fox Business, "Credit Reports Now Show Your Credit Card Bill-Paying Habits," Fred O. Williams, July 26, 2013