Costa Mesa and Beach Area Real Estate

Ok – so it’s a new year and you have promised yourself to clean up your credit – buy a house and take advantage of the historic low interest rates. Or maybe you have been in a holding pattern waiting for the bank to approve your short sale offer when your lender goes in to pull your credit again and…. oh oh…..something has gone horribly wrong and your credit score is now impacting your life and the potential of closing that deal. Perhaps you have recently gone through a short sale or foreclosure and are wondering what the average points lost will be on your credit score.

Here’s What the Experts Are Saying:

Fair Isaac (FICO) released a report on how your credit scores are affected.
Here are a few stats on the average points lost on a FICO score:

If your mortgage payment is 30 days late your scores could drop 40-110 points
If your mortgage payment is 90 days late your scores could drop 70 -130 points
If your home is in foreclosure, short sale or deed-in-lieu, your scores could drop around
85 – 160 points
If you have declared bankruptcy, your scores could drop around 130 to 240 points

How Is your Credit Score Affected in a Foreclosure or Deed-In-Lieu of Foreclosure?

If you have moved past the point of short selling your home, you could take a hit of 200 – 300 points, depending on the overall condition of your existing credit!

Did you know the higher your credit score, the more impact is made against your credit?
Let’s look at the impact of certain items against a 680 vs. a 780 credit score:

• Maxed out credit cards: -10 to-30 vs. -25 to -45
• 30-day late payment: -60 to -80 vs. -90 to -110
• Debt Settlement: -45 to -65 vs. -105 to -125
• Foreclosure: -85 to -105 vs. -140 to -160
• Bankruptcy: -130 to -150 vs. -220 to -24o

This is a guide, not a guarantee. The source is FICO and the results are given in a range since FICO is still a bit nervous on revealing too much about their proprietary scoring.

Warning: people with the same credit score may have very different credit profiles due to different amount and/or mix of accounts, shorter vs. longer credit history, use of available credit, etc. You get the idea – it all may vary.

If you are in need of a reputable, local credit repair company with years of experience, fully bonded and a 100% money back guarantee, please contact me directly at 949.295.5423.