CHARLESTON, SC (WCSC) - A new study by a financial company revealed those who spend a little extra when it comes to paying of credit card debts are less likely to go delinquent on their bills.
The TransUnion study showed consumers who were able to pay larger amounts than the minimum payment due on their credit cards had significantly lower delinquency rates on their credit cards, auto loans, and mortgages.
According to the study, those who were only making the minimum payments generally had higher delinquency rates.
"TransUnion's study has confirmed the conventional wisdom that transactors, those who pay off their entire balance each month, are better risks than revolvers," said Ezra Becker, co-author of the study and vice president of research and consulting in TransUnion's financial services business unit.
Revolvers is a term for those who only pay a portion of their balance.
"This study was important because it allowed us to quantify the extent to which higher credit card payments lead to improved loan performance," said Becker. "And not just on credit cards, but also on mortgages and auto loans."
For more information on the study, click here.