More Than A Number

An individual’s credit rating reflects his or her record for paying loans and bills. Consumers with a long-term credit history that shows consistent payment of bills on time tend to fare well when applying for loans. On the other hand, consumers whose histories show a string of late payments, one or more permanently unpaid loans, such as a foreclosure, and other red flags will find it difficult, if not impossible, to get a loan. Credit repair after foreclosure is possible but takes time. Fixing the damage to credit from bankruptcy is even more difficult–but even this red flag is eventually removed from a credit report.

While foreclosure damages credit, it does not remain on a credit report permanently, plus it can eventually be balanced by other loan payments when individuals seek sound credit repair advice and follow it diligently. Generally speaking, a foreclosure, while damaging to credit, only applies to a single account–the mortgage. A foreclosure weighs heavier on a credit report because it is usually the largest loan a consumer takes. However, the significance of a foreclosure on a credit report can eventually be reduced by diligent payment of other bills over a period time. To learn more, contact a professional for mortgage foreclosure help.

In terms of a consumer’s credit score, bankruptcy is more damaging to credit than foreclosure. While foreclosure applies to a delinquent mortgage account, bankruptcy involves the mortgage, plus several other accounts that may include auto loans, credit cards, and many other unpaid bills. In the case of bankruptcy, there are few accounts to balance the effects, and creating new accounts in hopes of building credit history is extremely difficult. However, even bankruptcy eventually is wiped from a credit report–so the sooner an individual begins repairing credit after bankruptcy, the better.