A recent TransUnion report discovered that, while many consumers defaulted on their mortgages following the recession, those who are only late on their home loans are better credit risks than those with multiple delinquencies.
TransUnion compared the automobile loans and credit card bills of those with mortgage-only delinquencies and multiple past-due accounts to conduct its report.
Of those with just late mortgage payments, 5.8 percent were also at least 60 days behind on their auto loans. However, 13.1 percent of those with multiple delinquencies had not paid their auto loans in 60 days as well. Regarding credit cards, 11.4 percent of mortgage-only delinquents were behind on their bills, however, 27.1 percent of those with more than one delinquent account were also late on these bills.
"This new market segment that the recession created is an important one for lenders to understand," said Steve Chaouki, group vice president in TransUnion's financial services business unit. "They have the potential, today, to be stronger and more reliable customers."
The study is good news for those with moving plans, as delinquent mortgage payments might not be as big a credit killer as many might think.