Foreclosure can impact your credit score

Everyone is aware that late payments affect your credit score, but exactly how much was unclear.  Recently, Fair Issac, which developed FICO scores, revealed some estimates of point score declines with respect to mortgage delinquency issues such as late payments, foreclosure, or bankruptcy.
 
Fair Issac created two hypothetical consumers, one who starts with an average score of 680 and the other with a very good score of 780.  FICO scores range from 300 to 850.  Here are average credit score point reductions:
 
30 days late:      40 – 110 points
90 days late:      70 – 135 points
Foreclosure
Short Sale
Deed –in-lieu:     85 – 160 points
Bankruptcy:        130 – 240 points
 
Five main factors that affect a credit score:  Payment history (35%), Amounts Owed (30%), Length of Credit History ( 15%), New Credit (10%), and Types of Credit Used (10%).
 
 
      

     Beth Wardlaw
     Broker, CRS, GRI, e-Pro
     WARDLAW Real Estate Team    
     Keller Williams Realty Southern Indiana
     Cell:   502.807.2384  
     Fax:   502.554.9585
 
     WardlawRealEstateTeam.com
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