Jim Hutelmyer of People’s Mortgage Company and the DistressedHoweownerRescue.com team’s Phoenix Arizona mortgage banker published some very interesting facts about Phoenix consumer credit reports and the factors that contribute to Phoenix Arizona distressed homeowner credit scores.
Mr. Hutelmyer noted that the largest factor in formulating consumer credit scores is a homeowner’s credit payment history. Contributing to a whopping 35% of a Phoenix homeowner’s credit score, the payment history is a very important aspect in maintaining and repairing one’s credit score.
The second largest contributing factor to a consumer’s credit score is the individual’s utilization of credit. Jim stated that at approximately 30% of the weight of a consumer’s credit rating, credit utilization is the ratio of revolving debt (such as credit card balances) over the total available revolving credit. Maintaining a low total credit card balance relative to the total credit card available credit can be extremely helpful in rebuilding one’s credit score.
At 15%, the third heaviest factor in determining a credit score is the length of a consumer’s credit history. A longstanding history of on-time payments can work well towards building or rebuilding an individual’s credit score.
The final two factors which contribute to a Phoenix homeowner credit score rebuild both weigh in at 10% and are the amount of new credit and the types of credit used. When consumers apply for a credit card or loan, the application process itself can adversely affect a consumer’s credit score, especially if applying is done in large numbers. Explanations may be required on any inquiries noted on an individual’s credit report to confirm that no additional debt has been added to the consumer’s profile.
When it comes to types of credit used, consumers can benefit greatly by having a history of managing different types of credit such as mortgage debt, installment loans and revolving accounts (credit card balances).
If you are a distressed homeowner in Phoenix Arizona and have been late and/or delinquent on payments of credit balances, one step to the road to recovery is to begin making timely payments on different types of credit balances, but only on your credit counselor’s advice. We want to thank Jim Hutelmyer of People’s Mortgage Company located in Scottsdale for continuing to provide invaluable information and tips for our Phoenix Arizona homeowners in distress.
If you are you a Phoenix Arizona homeowner considering a loan modification, a short sale or a foreclosure and you are not sure which path to choose, contact our team of Phoenix Arizona distressed homeowner specialists and they will help you formulate the best plan for your circumstances, goals and needs.