Research by Experian Consumer Direct shows that 16 percent of consumers use more than half of their available credit, which results in below average credit scores. These borrowers have about 4.6 credit cards, surpassing the national average of 3.2 cards. Residents of the North Central and Middle Atlantic regions use less of their available credit than those in other parts of the country. Although New Englanders have the highest credit-utilization rates and monthly payments, they also have the best credit scores and generally pay their bills on time. Credit-utilization is important because it accounts for 30 percent of a consumer''s credit score -- with credit history, inquiries, types of credit, and payment history making up the remainder. In order to maintain the best credit scores and the lowest credit-utilization rates possible, experts say consumers should avoid closing accounts. They also should think twice before obtaining home-equity credit lines because these immediately show up in credit reports at 100 percent utilization.
Russ Ravary is a licensed real estate agent in the State of Michigan and a Realtor.
Photos, Comp and Listing Information Courtesy of Realcomp II Ltd, Properties shown have been listed and sold by various MLS member REALTOR® agents.
I do not guarantee or warrantee any of the above information. Please feel free to verify any of the facts. I recommend to always have a home inspection, always consult an attorney about contracts, Purchase agreements and any legal questions. Also consult a CPA or accountant about tax consequence regarding a Michigan home sale, or Michigan foreclosure.