Trended credit could possibly turn many who have been denied pre-approval opportunities into ready ready buyers without anything changing on their end. The possibilities that trended credit presents has a bulk of benefits for those with traditional credit deficiencies, which now takes into account the credit payments over a larger period of time.
From a recent Fannie Mae article- Trended credit takes into account the following behaviors:
If you pay your credit card balance in full each month, you may be considered less risky than someone who carries a balance forward.
If you transfer balances without paying them off, that will be seen as more of a risk by Fannie Mae.
The formula will also take into account whether you’re a non-user/infrequent user of your cards or use them at a specific time each year. This can benefit clients who previously might not have shown much credit utilization if they only use the card over certain times of the year, like the holidays.
All in all trended credit will be a great thing for some and a not so great thing for many who have had issues in the past with balance transfers and late payments. So If you were denied a few months ago for a loan, you very well could be able to get funding now due to the new factor of trended credit.