Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The Inside Story on Credit Scores


Which actions hurt the most?

The repercussions certain actions can have on your credit score vary depending on your credit history. In general, higher scores can fall further for the same action, since a lower score already reflects riskier past behavior.

Lending institutions such as Chase (JPM), Citi (C), and Bank of America (BAC) offer the best terms to those with the highest credit scores.

Here's a look at two scenarios, and how much particular negative actions can ding scores.

For someone with a 680 score, eight-year credit history:

  • Maxing out credit card: 10-30 points

  • 30-day delinquency: 60-80

  • Settling credit debt: 45-65

  • Foreclosure: 85-105

  • Bankruptcy: 130-150

For someone with a 780 score, 15-year credit history:

  • Maxing out a credit card: 25-45

  • 30-day delinquency: 90-110

  • Settling credit debt: 105-125

  • Foreclosure: 140-160

  • Bankruptcy: 220-240

Source: FICO

See also, How I Negotiated With My Collection Agency.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos