6 Big Hits to Your Credit Score

In the real estate business I often hear people asking how short sales, foreclosures or late payments affect their credit score. USAA recently published an excellent article helps answer that question:

Here's a look at six top credit score zappers and their average hits to your score based on data compiled by Fair Isaac Corp., which developed FICO scores, and VantageScore, the scoring model used by three of the major credit bureaus — Experian, TransUnion and Equifax.

1. Bankruptcy: 165 to 365 points, depending on number of delinquent accounts and your score when it's reported. Scoring models usually give the most weight to payment history, and bankruptcy is included in that category.

2. Foreclosure: 105 to 160 points.

3. Short sale mortgage A lower sales price than outstanding balance was negotiated, but a delinquency was reported: 115-140 points.

4. Settling a credit card debt for less than is owed: 65 to 125 points.

5. 30-days late on a payment: 60 to 110 points.

6. Maxing out a credit card: 10 to 45 points.

For the full article, visit USAA.com. (BTW, USAA is now available to non-military members.)