For someone with a 780 credit score, which is a good credit score, the impact of “negative events” is far greater (double in some cases) than on someone with a 680 score, which is still a fairly decent score. This is not a surprise, but this list should be – it’s the first time hard numbers, albeit ranges, have been associated with negative events.
Effect on a 780 credit score:
- Maxed-out card: -25 to -45
- 30-day late payment: -90 to -110
- Debt settlement: -105 to -125
- Foreclosure: -140 to -160
- Bankruptcy: -220 to -240
Effect on a 680 credit score:
- Maxed-out card: -10 to -30
- 30-day late payment: -60 to -80
- Debt settlement: -45 to -65
- Foreclosure: -85 to -105
- Bankruptcy: -130 to -150
They made some broad assumptions about the example individuals but overall it’s enlightening to understand the quantitative impact of these events.
Jim writes about personal finance at Bargaineering.com.