0
A foreclosure will substantially reduce your credit score in the short term and will remain on your credit for 7 years. If you do not get into credit shock after a foreclosure and continue to add good credit to your profile, e.g. secure credit card and pay other bills in a time--you will see that it will not have as much affect on your score in about 24 to 36 months. Creditors are concern about what you have done in the last 24 months. Your credit score is rating in the following many: Your payment history is 35% of your score and the amount owed is 30%, the length of time you have your credit is 15%, so the older is the better, the type of credit is 10%, and new credit is 10%. It is best that you keep this in mind and do not continue to improve your credit after a foreclosure.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
Do unsecured loans affect your credit rating?
An Unsecured loan can very much affect your credit rating, but it depends on whether you pay it back and keep your promise. If not, your credit rating can severely drop and you will lose trust with your provider.
How much does a transunion credit report cost?
The cost varies depending on your credit rating. If your credit rating is very low, it could cost you anywhere from 100$ to 1000$, but if you are good, then it could be free.
When does foreclosure disappear from the public record section of a creadit report?
A foreclosure does not disappear from the public records section of a credit report. It is much like a judgment that is not satisfied. It stays on the report forever.
Do you need good credit for an auto loan?
For the more expensive cars you will need a good credit rating,you credit rating is a way of letting the lender know how much he or she can lend you with the probability of you paying it back.
Can you get a credit card just to have the card?
Sure, but to have the card and not use it does NOT improve your credit rating. If you amass too many credit cards - even if you never use a single one of them - it decreases your credit rating because you have "too much available credit potential".
Does is make a difference if you have one foreclusure or 2?
The first foreclosure will have the largest impact on one's creditworthiness as the home is considered the most important asset to protect (largely by keeping up with mortgage and tax payments). The belief is that if one does not keep up payments on their home, why would they keep up payments for anything else as anything else is insignificant in comparison. The foreclosure will stay on your credit record for up to 10 years and will negatively impact your credit score throughout the entire period. If you got your second foreclosure within those 10 years, your credit rating will be lowered, but not as much that resulted from the first foreclosure. If you got your second foreclosure more than 10 years after getting the first, your credit rating will be negatively impacted to the same level as the first was.
What happens if you surrender your home?
If you mean by surrender you are in foreclosure, the answer depends on how far along in the process you are and how much equity you have in the property. The short answer is you will still have damage to your credit rating and a foreclosure on your record. You should call your lender immediately to try to work out alternate arrangements. They generally do not want to foreclose and will try to work with you.
Do unsecured loans affect your credit rating?
An Unsecured loan can very much affect your credit rating, but it depends on whether you pay it back and keep your promise. If not, your credit rating can severely drop and you will lose trust with your provider.
What to do after foreclosure?
After foreclosure, your top priority should be to find a decent, affordable place to live and to start rebuilding your credit. The best way to plan your next steps is to learn as much as you can about your rental and home buying options after foreclosure.
Can you get another car loan if you let the car go back?
It depends more on your overall credit rating and how much time has passed since you defaulted on your loan. In general the default will be removed from your record after approximately 7 years. After that, it will not have an effect. However, if you you have a bad credit rating due to other defaults, late payments, etc they will continue to negatively affect your credit rating making it difficult to get a loan.
How much does a transunion credit report cost?
The cost varies depending on your credit rating. If your credit rating is very low, it could cost you anywhere from 100$ to 1000$, but if you are good, then it could be free.
When does foreclosure disappear from the public record section of a creadit report?
A foreclosure does not disappear from the public records section of a credit report. It is much like a judgment that is not satisfied. It stays on the report forever.
Would closing a credit card damage my credit score?
Yes closing a credit card can damage your credit score. But as long as everything else is good it should not affect you credit rating to much. Look for tips to keep a good credit card rating.
Do you need good credit for an auto loan?
For the more expensive cars you will need a good credit rating,you credit rating is a way of letting the lender know how much he or she can lend you with the probability of you paying it back.
Can you get a credit card just to have the card?
Sure, but to have the card and not use it does NOT improve your credit rating. If you amass too many credit cards - even if you never use a single one of them - it decreases your credit rating because you have "too much available credit potential".
What is the effect on your credit rating immediately after you get a mortgage?
You must have some sort of valid credit rating in order to get the mortgage to begin with (unless you went through one of those "last chance" guys that charge 25% on the principal) and as long as you don't default on any payments your credit rating can only go up. The rating is a reflection of your ability to pay off debt. Getting a mortgage will affect any future amounts you may wish to borrow only in regard as to the amount. You can only carry so much debt based on your income, regardless of how fabulous your credit rating may be.
How long does foreclosure stay on your credit?
7 years. Lenders will set underwriting guidelines for how much time must pass after a foreclosure before they will lend to you again, but the acutal reporting lasts 7 years. Some lenders will extend credit if the foreclosure is not within the last 2 years, 3 years, or 5 years depending on their policy.
