TransUnion Study Shows Credit Card Payment Patterns Can Forecast Other Delinquencies

A new TransUnion study found that consumers with the ability to pay above the minimum amounts on their credit cards had significantly lower delinquency rates on their auto loans, credit cards and mortgages. In contrast, consumers who paid an amount close to the minimum payment had higher delinquency rates. While this is not a surprise, not all revolvers are equal.

Please complete the form to access the full study, which analyzes the implications of consumers’ payment patterns.

TransUnion Minimum vs. Actual Payments Study



making payments on their credit cards in a given month almost always pay off their entire credit card balance.

Of the other 6 consumers who make a payment in a given month, two will only pay the minimum owed.

Among the metrics developed by TransUnion for this study was the Total Payment Ratio (TPR). It’s calculated by dividing a consumer's total credit card payments in any time period by the total minimum due in that time period on all of the consumer’s cards.

For instance, someone making $1,200 in payments on 3 credit cards when the aggregate minimum due on those cards was $600 has a TPR of 2.0. A person making $1,200 in payments with an aggregate minimum due of $200 has a TPR of 6.0. TransUnion used this metric to analyze how credit users performed on various loan types


TransUnion also developed the Aggregate Excess Payment (AEP) metric to gauge how much in aggregate the actual payments made were in excess of the minimum payments due. It’s calculated by subtracting the total minimum due from the total payments made in any timeframe across a consumer's cards

Consumers with the same TPR could have much dierent AEP proles. For instance, a consumer making $2,000 in payments with a total minimum due of $1,000 has a TPR of 2.0 and an AEP of $1,000. A consumer making $200 in payments when the total minimum due was $100 also has a TPR of 2.0, but his AEP is only $100.