Four in 10 Canadian Credit Card Holders Uncertain About Importance of Paying More than Minimum Due

TORONTO, ON--(Marketwired - February 22, 2017) - New research across global markets from TransUnion (NYSE: TRU) has found that those consumers who make payments in excess of the minimum due are consistently less risky across multiple credit products.

TransUnion's research, which analyzed consumers in Canada, Hong Kong and the United States, determined that the more consumers pay over their minimum payment due for credit cards or other revolving lines of credit, the less likely they are to go delinquent. Such findings derived from trended data could help lenders better mitigate account risks and maximize consumer opportunities.

Whereas a traditional credit report offers a glimpse of a consumer at a snapshot in time, trended data assets leverage up to 24 months of historical information. For example, while a traditional credit report may tell you a consumer has $3,000 in credit card debt, one using trended data would show you whether they have built up or paid down that balance over time.

"Our findings, combined with the increased use of trended data, are good news for Canadian consumers. This will especially benefit those consumers who make larger than required payments on their debts each month," said Todd Skinner, president of TransUnion Canada. "Even if consumers can't pay the full balance, they may now find that lenders view them more positively depending on the amount they pay. We encourage the use of trended data and the reporting of payment behaviour because both lenders and consumers can benefit from these newly available insights."

According to a new TransUnion survey of 1,010 consumers in Canada, 88% of respondents indicated that they more often pay a greater amount than their minimum due on their revolving debts each month. Yet a significant number (39%) are uncertain about the importance or benefits of paying off an increasingly greater amount.

Around the World: How Do Consumers Pay Off Their Credit Cards?
Question/Country		Canada		U.S.		South Africa		Hong Kong
Percentage of credit card holders that often pay a greater amount than their minimum due on their revolving debts each month		88%		89%		44%		88%
Percentage of credit card holders that are uncertain about the importance or benefits of paying off above the minimum balance		39%