Consumers have known that short sales, foreclosures and bankruptcies can have significant negative impacts on their credit reports and credit scores. A new report was recently released that details how much your credit score will be affected by a number of negative financial situations.
Syndicated Writer Kenneth Harney for the Washington Post did some research as to just how much damage short sales, foreclosures and bankruptcies affect your credit score.
The numbers that Harney came up with are based on your Vantage credit score. This is not the same as your FICO score that is commonly used when applying for loan, but an alternative system developed by Equifax, Transunion and Experian that was developed to side-step Fair Isaac. With a traditional FICO score, the maximum score that a customer can receive is 850, with the Vantage score, customers can receive a rating of up to 1,000.
According to Harney, a short-sale will ding your Vantage credit score by 120 or 130 points. Foreclosures will drop your credit score by 140 to 150 points and a bankruptcy will decimate your credit score by up to 365 points.
