If you are facing a foreclosure, you might be full of questions. Namely, how will this decision affect your credit score?
It’s a valid concern, as foreclosure will affect your credit score, at least for a few years after you go through the process.
There are things you should know and the legal experts at Mina Nami Khorrami LLC are here to help. Here are three things you need to know. Read on:
Credit report vs. credit score
These are two different things and knowing the difference is crucial if you are facing foreclosure.
A credit score is based on your credit report, which is a document showing your credit history. A credit score is a number that basically translates into whether lenders believe you are a good risk for a loan or other credit. You receivea good score by having a good credit history, which includes making timely payments on your debts.
Your credit report is always changing, as new information (like a bankruptcy or foreclosure) becomes available.
What influences my score?
Many factors can influence your score and a “good” rating depends on what a particular lender or institution is looking for. Factors that can impact your score are: having too many credit cards, failing to pay off car/home/student loan debts, paying your bills late and other things, including foreclosure and bankruptcy.
Foreclosure and credit scores
A foreclosure, similar to other delinquencies can stay on your credit report for seven to ten years, meaning it will likely be more difficult to be able to purchase a home or car during that time with a favorable interest rate.
You can bounce back from a foreclosure, but it will take time by making payments on obligations timely and keeping a job for an extended time.
Mina Nami Khorrami LLC
If you have questions or concerns about foreclosure or your score, the legal experts at Mina Nami Khorrami LLC can help. Contact us today at 614-857-9590.