(Source: new York Times By MARYANN HAGGERTY) – IF you want to see how quickly you can ruin a great credit score, just skip a mortgage payment. Lenders use credit scores to measure how you handle debt. The number you’ll see most often is your FICO score. It runs from 300 to 850. The major credit reporting bureaus developed a rival, VantageScore, with scores from 501 to 990.
Missed mortgage payments, serious loan delinquencies, loan modifications, short sales, foreclosures and bankruptcies all drag down credit scores. Because a mortgage is such a big slice of anyone’s credit profile, it carries more weight than other loans. Both FICO and VantageScore have studied and quantified those impacts.
Source: new York Times By MARYANN HAGGERTY
Published: April 21, 2011
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