A new Transunion study found that consumers with the ability to pay larger amounts than the minimum payment due on their credit cards had significantly lower delinquency rates on not only their credit cards, but also their auto loans and mortgages. Consumers who made the minimum payment, or close to it, generally had higher delinquency rates.
"TransUnion's study has confirmed the conventional wisdom that transactors -- those consumers who pay off their entire balance each month -- are better risks than revolvers, i.e. consumers who only pay a portion of their balance, and moreover has quantified just how big an increase in risk revolvers represent," said Ezra Becker, co-author of the study and vice president of research and consulting in TransUnion's financial services business unit. "
