Are You a “Transactor” or a “Revolver”?

Confused? We don’t blame you.

These are terms related to your credit which are about to become quite important to would-be home buyers – and lone-seekers – in the coming year. A “transactor” pays off credit cards in full every month or exceeds the minimum required payment. A “revolver” consistently makes the minimum payment every month, thus always rolling over balances.

Why is this important? Up to now, credit reports only showed whether an applicant was late on card payments or defaulted on a car loan. Now, however, the reports will show how applicants managed their credit over the previous two years.

Obviously a “transactor” will be considered a better risk and this new information will be used to help determine whether an applicant qualifies for the loan they are seeking.

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