{"id":138502220,"date":"2015-04-01T00:00:00","date_gmt":"2015-04-01T04:00:00","guid":{"rendered":"https:\/\/acccapital.com\/the-six-biggest-hits-to-your-credit-score\/"},"modified":"2026-04-02T13:02:35","modified_gmt":"2026-04-02T17:02:35","slug":"the-six-biggest-hits-to-your-credit-score","status":"publish","type":"post","link":"https:\/\/acccapital.com\/hi\/the-six-biggest-hits-to-your-credit-score\/","title":{"rendered":"The Six Biggest Hits to Your Credit Score"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-48751\" src=\"https:\/\/acccapital.com\/wp-content\/uploads\/2015\/03\/CreditScore.jpg\" alt=\"CreditScore\" width=\"600\" height=\"450\" \/>With the focus on credit quality these days, the credit scores of principals\/guarantors in the application\u00a0process of securing a loan has become a greater focal point among lenders.\u00a0<span style=\"line-height: 1.714285714; font-size: 1rem;\">Even Commercial Real\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">Estate lenders (like life insurance companies) have paid more attention to credit scores over the last 2\u00a0<\/span>years since the economic recession has taken hold.\u00a0In fact, there are few things in your financial life that\u00a0affect your ability to secure credit more\u00a0profoundly than your credit score.\u00a0However, it still remains a\u00a0relative mystery to as to what financial \u2018episodes\u2019 really affect your score dramatically and which don\u2019t.\u00a0<span style=\"line-height: 1.714285714; font-size: 1rem;\">Some activities can just \u2018scratch\u2019 your credit score, while others can \u2018dent<\/span>-in the\u00a0whole fender\u2019.<!--more-->  <span style=\"line-height: 1.714285714; font-size: 1rem;\">Until recently, credit bureaus didn&#8217;t disclose how your payment lapses hurt your score.<\/span> In truth, their\u00a0reluctance to share is somewhat understandable as a myriad of variables contribute to creating your\u00a0individual credit score.  <\/p>\n<ul>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">Your payme<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">nt track record<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">H<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">ow much you owe<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">How long you&#8217;ve had established credit<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">Whether or not you&#8217;re taking on new credit<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\">The types of credit accounts you have open<\/span><\/li>\n<\/ul>\n<p>  In short, everyone\u2019s payment history and financial picture differs considerably, so a precise \u2018number\u2019 per\u00a0misstep is impossible to predict.\u00a0However, from the limited data now being released by both\u00a0<a title=\"FICO Scores and credit basics\" href=\"http:\/\/www.myfico.com\/CreditEducation\/articles\/\" target=\"_blank\" rel=\"noopener\">Fair Isaac Corp.<\/a>, which developed\u00a0FICO scores, and\u00a0<a title=\"Vantage Score:  Impact on Consumer VantageScore Credit Scores Due To Various Mortgage Loan Restructuring Options\" href=\"http:\/\/www.vantagescore.com\/research\/loanoptions\/\" target=\"_blank\" rel=\"noopener\">VantageScore<\/a>, the scoring model used by three of the major\u00a0credit bureaus\u00a0\u2014\u00a0<a title=\"Experian Credit Score services\" href=\"http:\/\/www.experian.com\/\" target=\"_blank\" rel=\"noopener\">Experian<\/a>, <a title=\"TransUnion Free credit score\" href=\"http:\/\/www.transunion.com\/\" target=\"_blank\" rel=\"noopener\">TransUnion<\/a> and <a title=\"Equifax: Find and manage your Credit score\" href=\"http:\/\/www.equifax.com\/home\/en_us\" target=\"_blank\" rel=\"noopener\">Equifax<\/a>, we can determine with relative accuracy, which\u00a0\u2018financial transgressions\u2019 are particularly bad for your credit score and which are not.  So here they are in order of magnitude:  <\/p>\n<ol>\n<li><strong><span style=\"line-height: 1.714285714; font-size: 1rem;\">Bankruptcy:\u00a0<\/span><\/strong><span style=\"line-height: 1.714285714; font-size: 1rem;\">165 to 365 points\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">&#8212;\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">depending on number of delinquent acco<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">unts and\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">your score when it&#8217;s reported.\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">If your score was already low, you would be at the lower\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">end of this scale.\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">If your credit score is fairly high (say in the 700\u2019s) you would fall into\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">the higher end of the range.\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">In general, all the scoring model i<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">s usually give the most\u00a0<\/span><span style=\"font-size: 1rem; line-height: 1.714285714;\">weight to payment history, and bankruptcy is included in that category.\u00a0<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\"><strong>Foreclosure:<\/strong>\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">105 to 160 points\u00a0<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\"><strong>Short sale mortgage:<\/strong>\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">A sales price lower than the outstanding balance was\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">negotiated, but a delinquency was reported: 1<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">15<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">&#8211;<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">140 points\u00a0<\/span><\/li>\n<li><span style=\"line-height: 1.714285714; font-size: 1rem;\"><strong>Settling a credit card debt for less than is owed:<\/strong>\u00a0<\/span><span style=\"line-height: 1.714285714; font-size: 1rem;\">65 to 125 points<\/span><\/li>\n<li><strong>30-days late on a payment:<\/strong>\u00a060 to 110 points<\/li>\n<li><strong>Maxing out a credit card:\u00a0<\/strong>10 to 45 points<\/li>\n<\/ol>\n<p>  Contrary to the many ads you see which claim to \u2018re-build\u2019 your credit\u00a0score, you can\u2019t actually rebuild the\u00a0credit score.\u00a0You have to rebuild your credit history which then is reflected in the score.\u00a0The length of\u00a0time to improve your credit history varies.\u00a0Although late payments remain on your credit report for seven\u00a0years, if you clear up all past due debts and pay on time for 6-9 months, you should be able to raise your\u00a0score by more than 75 points on average.  The effects of bankruptcy, however, are long\u00a0-lasting.\u00a0A Chapter 13 bankruptcy, where you make partial\u00a0repayments over a number of years, will remain a negative influence for nearly the full seven years or\u00a0until all payments are made and new credit is established.\u00a0Chapter 7 bankruptcy, or total liquidation,\u00a0remains in your record for 10 years and has some effect\u00a0on your score for the entire period.  The National Foundation for Credit Counseling suggests that you \u2018check\u2019 your credit score free,\u00a0annually at:\u00a0<a title=\"Free Annual Credit Report\" href=\"https:\/\/www.annualcreditreport.com\/cra\/index.jsp\" target=\"_blank\" rel=\"noopener\">www.annualcreditreport.com<\/a>\u00a0and review it for accuracy. The bottom line is that credit quality can go a long way to cure other minor issues on a loan request, so it\u00a0is always best to be sure to talk about your credit before submitting a loan to <strong>Arkansas Capital Corporation<\/strong>.  <strong>If you&#8217;re ready to apply for a business loan now, <a title=\"Contact Arkansas Capital Corporation\" href=\"https:\/\/acccapital.com\/hi\/acc\/contact-acc\/\">click here to contact us<\/a>. To learn\u00a0more information on small business loans and to find the one right for your business, visit the <a title=\"Loan Products\" href=\"https:\/\/acccapital.com\/hi\/acc\/loan-products\/\">loan products<\/a> page.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>With the focus on credit quality these days, the credit scores of principals\/guarantors in the application\u00a0process of securing a loan has become a greater focal point among lenders.\u00a0Even Commercial Real\u00a0Estate lenders (like life insurance companies) have paid more attention to credit scores over the last 2\u00a0years since the economic recession has taken hold.\u00a0In fact, there [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":138502222,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[109,110],"tags":[],"class_list":["post-138502220","post","type-post","status-publish","format-standard","has-post-thumbnail","category-entrepreneurship-foundation-news","category-lending-news","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Six Biggest Hits to Your Credit Score | ACC Capital<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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