Openly challenged by Vantage Score's new dynamic credit model, in 2015 TransUnion has rolled out its own commitment to improving credit: a better credit score for responsible payers, guaranteed. In fact, Trans Union's new Credit Vision suite is improving credit options by introducing scoring based on an account history of 30 months and performance data for the last 82 months. Still scoring individuals between 300 and 850, improving credit score criteria means that over 26.5 million customers who were previously unscoreable will now generate and be eligible for credit.
What is the difference between a static and dynamic report? Static credit reports are an unchanging picture of your credit, as most recently reported by your lenders and debt collectors. Unlike a dynamic report, a static report will not show your current payments, how much you paid, or did you pay early etc. it will simply report on if you did or did not pay on time which means you are not actually rewarded for doing more than the bare minimum. Trans Union’s idea is actually a very smart one because improving credit should be easier for those who use credit responsibly, and do more with their credit than what they have to do. By using a new dynamic method, improving credit score is now about good practises not just minimum payments.
How do should you start improving credit with the new model? Pay your bills on time or early, pay your bills in full, pay more than the minimum payment on your credit card products, avoid hard inquiries or remove inquiries with the help of Inquiry Busters, and avoid maxing out your credit cards or spending beyond what you can comfortably pay back.
Will all lenders report data to the Credit Vision system? Unfortunately, no. While TransUnion is taking a step in the right direction, change takes time, and many businesses will continue reporting only the bare minimum which is: hard inquiries, payments made on time, minimum payments made, missed payments and defaulted loan amounts. But, although some lenders will need time to catch up, it still pays to focus on improving credit now.