Credit reports for mortgages loans get an update

Thanks to a recent change by major credit rating agencies, mortgage lenders can now look at whether you pay off your bill every month or keep a balance.

Lenders now have access to a more comprehensive view of a borrower's debt management habits, specifically how much someone paid off each month on those accounts over the past two years.

The change was driven by Fannie Mae, the mortgage giant that guarantees many of the loans in the U.S. It found that all other things being equal, borrowers who paid off their credit card every month were 60 percent less likely to become delinquent than borrowers who make only the monthly minimum payment.

[...] paying down debts more aggressively may have an added bonus of improving your utilization rate, and thereby your credit score too.