I’ve had several clients in my office recently ask me why their credit report looks differently than it did last year.

The big change, as currently seen on a TransUnion and Experian report, is that the payment history is now shown for the last 24 months.  Equifax will begin showing this longer payment history within the next few months.  In the past, the report only showed your balance, if the minimum payment was made, and the credit limit.  This change was made so a potential lender reviewing your credit report can determine if you pay the balance in full each month on outstanding credit card debt or whether only a minimum payment is made.

At this time it is unclear if this reporting will change anything.  There is speculation however that it may lead to higher fees for those that pay their credit card balances off each month and may ultimately become a factor in your credit score.  In my opinion, this is just one more good reason to cut up the credit cards.