Credit Problems Like A Short Sale And Credit Scores

Time to time our Phoenix Arizona clients ask us about how their credit scores will be impacted by a short sale on their credit report. While we’re not credit report experts we do have some experience with our clients and the impact that a short sale. We also know that other credit problems lead to changes in credit scores.

Below we take a look at some of the most common credit financial problems that our clients have and what impact those problems may have on credit scores.

Part of our information comes from a series of education pieces published by myFico.com which you can find here: use a look-up guide.

As published by myFICO.com, here’s a few common financial difficulties and how they affect FICO scores.

Max-Out A Credit Card

  • Starting score of 780 : 25-45 point drop
  • Starting score of 680 : 10-30 point drop

30-Day Delinquency

  • Starting score of 780 : 90-110 point drop
  • Starting score of 680 : 60-80 point drop

Foreclosure – Short Sale

  • Starting score of 780 : 140-160 point drop
  • Starting score of 680 : 85-105 point drop

Not surprisingly, the higher your starting score, the more each given difficulty can drop your FICO. This is because credit scores are meant to predict the likelihood of a loan default. People with lower FICOs are already reflecting the effects of risky credit behavior.

Also worth noting that the above is just a guide — your scores may fall by more — or less — depending on your individual credit profile. The number and type of credit accounts you hold, plus their respective payments and balances make up your complete credit history.

Read the complete report at myFICO.com.