What Are Revolvers and Transactors? How Will These Labels Impact Your Credit Score?
There is an old myth which suggests that leaving a small balance on your credit card will actually help boost your credit score. While that may not make a whole lot of intuitive sense, plenty of people continue to believe this is the case.
However, not only is this not true, but due to the credit score measurements guidelines, allowing your account balance to rollover from one month to the next is actually detrimental to your credit score.
Revolvers vs. Transactors
When it comes to card balances, the three credit bureaus, TransUnion, Equifax and Experian, sort cardholders into one of two categories—revolvers or transactors.