How Does a Foreclosure Affect Your Credit Score and Report?
Homeowners who are going through or have gone through foreclosure are likely aware the process will affect their credit report. How much it will affect their credit standing, though, many are unsure of.
Seven Years on Your Report
For the seven years following a completed foreclosure, the filing will remain on consumers’ credit reports. However, after two years, the effects of foreclosure begin to lessen on one’s credit report.
Credit Score Takes a Dip
Typically, consumers will see a roughly 200 or 300 point drop in their credit score following a foreclosure. This means those with excellent credit scores will probably see their rating drop to good credit, while those with good credit will see their standing decline to poor credit.
What Can Be Done to Improve Credit
Though it may seem like the end of the world to some consumers who’ve been foreclosed on, there’s hope. Being sure to pay bills on time and in full and carefully managing one’s finances can go a long way to repair a credit score.