How Bad Will Foreclosure Hurt Your Credit?

November 30, 2009

Ever wonder what would happen to your credit score if you had a 30 day late payment?  Or are you deep in debt and wondering what to expect to happen if your credit score if you file for bankruptcy? Or maybe you are thinking about doing debt settlement as a way to possibly try to avoid bankruptcy?

Up until recently, financial mistakes were somewhat of a mystery as to what impact they would have on your credit – but thanks to the folks at FICO, now you can have a pretty good idea what several common financial missteps can have on your credit score.

It appears as if the people at FICO are at least trying to be a little more transparent as to how FICO scores are calculated – which in my opinion is a

good thing. Now people can have a good idea of exactly what kind of impact their decisions will have on their credit score rather than just “I have bad credit and I am not exactly sure why…”

According to FICO spokesman Craig Watts:

“I hope this information will help people to better understand FICO scores and the value for them of avoiding credit missteps. It illustrates key points such as the higher your score, the farther it can fall if you stumble. Getting and maintaining a good score isn’t complicated. We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly. “

Regardless of whether or not FICO releases more information about their scoring model – we know way more about it today than we did a month ago!

Source: arizonamortgageteam.com

Category: Credit

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