How Much Credit Scores Drop When Late Payments Occur
Published April 27, 2010 | 
If your are thinking about applying for a MI refinance or a Michigan mortgage for a home purchase any purpose, it’s important to estimate your credit score in advance for accurate quotes.
According to Credit Plus, a credit report service provider, here is a snapshot of how much your credit scores will drop for various late payments or delinquencies.
The following are estimates as the exact figures are tightly held by Trans Union, Experian, and Equifax, the credit reporting agencies responsible for credit reporting and scoring models.
- A 30 day late, or being at least 30 days past due, may drop your credit score by 10 to 110 points.
- A 90 day late, or being at least 90 days past due, may drop your credit score by 70 to 135 points.
- A foreclosure, short sale or deed in lieu may reduce your credit score by 130 to 240 points.
- A bankruptcy may drop your credit score by 130 to 240 points.
Additional factors are taken into account, such as how many accounts you have, how long they have been rated, and others, but this list at least gives you an idea of how much each unfortunate event may drop your credit scores.
Another important fact is when you apply for a MI refinance, or any Michigan mortgage, credit score is only part of the picture. For example, if you have had a bankruptcy in the past there are certain criteria that you must meet in addition to the minimum score requirements. See all 21 Factors to a Michigan Refinance or Purchase Mortgage for more info.
If you are looking for a MI refinance, or Michigan mortgage get a Michigan mortgage quote here.
