The Un-Magnificent Seven of Credit Scores
Posted by David Zadareky on Thursday, May 26th, 2011 at 1:01pm.
You know your credit score is important. The closer your score is to 800 the better your chances of securing a loan for that beautiful Alexandria home. A high score also means better rates and terms for the loan.
However, many people don’t realize that certain negative actions can bring down your credit score—and keep it there for seven years or more.
From an article on RealtyTimes, here are seven things that can wreck your credit score and your subsequent eligibility for financing.
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Frequent Late Payments (aka Deadbeat Behavior) – Consistently making payments 30, 60, or 90 days late should be avoided. Know that paying even 30 days late can stay on your report for many years.
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Collections – If you lender contacts a collection agency to obtain your payment, it’s reported to the credit bureaus. This negative information says put on your report for seven years.
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Charge Offs – It’s another seven-year transgression if your lender charges off your debt because they know you’re never going to pay.
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Public Proceedings – These include bankruptcy, tax liens or other financial judgments assessed to you. Even if you pay them off, they’ll show for seven years on your report. Bankruptcies can hang on for ten years and you never get rid of an unpaid tax lien.
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Settlements – This means paying part of your debt in a settlement such as a mortgage short sale. Whether for mortgage, credit cards or other debts, a settlement notice means (you guessed it) seven years of a bad credit score.
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Foreclosures – Whether your lender forecloses on your home or you give it to the lender in a deed-in-lieu of foreclosure, it’s another seven-year stain on your report.
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Vehicle Repossessions – Not paying the car loan means the repo man takes the car and your credit score takes another nasty hit.
For those who’ve managed to avoid the things on this list, keep up the good work! If you’ve committed one of these transgressions, all is not lost. With a lot of patience and hard work, you can get your credit score back in line. And now you know what not to do to keep it there.
If you’re in the market to make a move in Northern Virginia, you owe it to yourself to work with an exceptional real estate team committed to Going Beyond Your Expectations. That team is RE/MAX Evolution & David Zadareky.
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A bit surprised it seems to smilpe and yet useful.
Posted on Sunday, November 20th, 2011 at 2:45pm.