According to Google...a credit score is a 3-digit number that is calculated from information on a credit report and generally ranges between 300 and 850. A GOOD credit score is 670 to 739 on the FICO score range while a credit score of 661-780 is good on the Vantage Score Range ( Vantage Score Solutions LLC is a consumer credit scoring company based in Stamford, CT. It was created in 2006 and is jointly owned by the three major consumer credit reporting companies: Equifax, Transunion, and Experian).
- 300 - 579 = poor
- 580 - 669 = fair
- 670 - 739 = good
- 740 - 799 = very good
- 800 - 850 = excwptional
Defaulting on a loan or credit card debt places a negative mark on your credit reports that can hurt your credit scores for 7 years, but it also can signal future events that do even greater damage to your credit.
Default typically occurs if you go 90 days without making a scheduled debt payment. That default entry stays on your credit report for 7 years.
Defaulting on a mortgage usually triggers foreclosure. (Foreclosure happens when a borrower fails to keep up with their mortgage payments, and the lender who issued the loan takes possession of the property and sells it to try and recoup the funds it lent.)
How does a foreclosure impact your credit?
A foreclosure is considered a serious derogatory event in your credit history, second only to bankruptcy in terms of severity.
Rather than foreclosure, some people opt to work with their lender (if the lender is willing) to a short sale of the property. ( A short sale home is usually sold for "less than" or "short of"-the remaining amount of the mortgage loan. Once the home is sold the lender will either "forgive" the difference or obtain a deficiency judgment against the original borrower).