Did you know there are 5 KEY COMPONENTS that make up the majority of FICO scoring? The list below reviews specific derogatory items and how they could impact a FICO score. This is an average based on statistics, and in some cases, we have actually seen numbers be higher. Most buyers are unsure what will affect their credit and their purchasing power. [If you are a real estate professional, please feel free to pass this information on to your clients.]
1. Maxed-Out Cards
Effect on a 680 FICO Score: -10 to-30
Effect on a 780 FICO Score: -25 to -45
2. 30-Day Late Payment
Effect on a 680 FICO Score: -60 to -80
Effect on a 780 FICO Score: -90 to -110
3. Debt Settlement
Effect on a 680 FICO Score: -45 to -65
Effect on a 780 FICO Score: -105 to -125
4. Foreclosure
Effect on a 680 FICO Score: -85 to -105
Effect on a 780 FICO Score: -140 to -160
5. Bankruptcy
Effect on a 680 FICO Score: -130 to -150
Effect on a 780 FICO Score: -220 to -240
WE CAN HELP
We have tools available to us to help our clients repair their credit. A look to the future – answers to “What if I did this?” or “What if I do that?” We can give borrowers true answers and real direction to obtaining the score they desire, should they need it.
