The way that consumers manage their credit cards reveals how likely they are to default on mortgage payments.
A study by lender TransUnion in Canada, the US and Hong Kong, reveals that those who consistently pay more than the minimum payment on their credit card statement are less likely to be risky borrowers on other credit products.
Such findings derived from trended data could help lenders better mitigate account risks and maximize consumer opportunities.
“We encourage the use of trended data and the reporting of payment behaviour because both lenders and consumers can benefit from these newly available insights,” said Todd Skinner, president of TransUnion Canada.
The TransUnion survey of 1,010 consumers in Canada reveals that 88 per cent of respondents indicated that they more often pay a greater amount than their minimum due on their revolving debts each month. Yet a significant number (39 per cent) are uncertain about the importance or benefits of paying off an increasingly greater amount.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: