By almost any measure a completed foreclosure is the most damaging event your credit status can encounter – worse than bankruptcy. A foreclosure on your credit record will negatively impact your ability to borrow money for years. For most people, it is well worth the time and effort to solve the problem before the foreclosure is done.

We have tried to answer the most common questions about credit ratings. If you haven't found the answer you want here, please contact a credit specialist. See similar questions...

A property foreclosure is one of the most damaging events in a borrower's credit history. In terms of the effect on credit history, a deed in lieu of foreclosure or a short sale is not as adverse an event as is a forced foreclosure. See similar questions...

Many people assume that making payments on time means they have good credit and being late with payments causes bad credit. Making consistently late payments will cause a bad credit rating, but your payment history only accounts for 30% of your credit score. Your make up of debt plays an almost equally important role. The make up of your debt can have a negative affect on your credit score. See similar questions...

Your credit rating is based on a combined score generated from three credit bureaus who look at your credit history, amount of credit available, and recent inquiries to determine what's called your FICO score. A smart way to go is to have your Mortgage Rep. check your rating for you and, if appropriate, suggest ways for you to improve your credit. For a small fee, you can get your score or review your credit report by going online to www.myfico.com or contacting the credit bureaus directly at: See similar questions...

You may find it difficult to qualify for credit cards again, but that is not a bad thing. :) However, you will probably be receiving credit card solicitations in the mail again right after bankruptcy. You should throw such mailings away, and if possible, keep only one active credit card, ever, for the rest of your life, which card you should apply for after your bankruptcy. You should be able to qualify for a "secured" credit card, e.g., through Capital One. See similar questions...

Don't max out your credit cards-the ratio of available credit to your total credit balances is very important. Don't apply for multiple credit lines; it triggers an inquiry of your credit, which lowers your credit score. The interest rate on an ARM is tied to a market index and is fixed for a specific period of time. See similar questions...

If you're shopping around for auto loans you should know that when creditors check your credit it places an inquiry on your credit report. Inquiries can add up, which is often interpreted negatively by creditors. For this reason, too many inquiries can actually make getting an auto loan more difficult. See similar questions...

Yes. All of the major credit agencies get a monthly update of all IVA’s. They keep a record of the IVA for at least 6 years from when it commenced. See similar questions...

For most people who are considering Voluntary Bankruptcy, you will already have a bad credit rating. When you declare yourself bankrupt, your credit will be damaged for 7 years. You must disclose that you are bankrupt to apply for any more credit and this amount must not go over $4,374 (indexed) during your period of bankruptcy. See similar questions...

Yes. You will have negative marks reported to the credit reporting agencies, such as delinquencies and charge-offs. Negative marks usually do not show up for 90 - 120 days after you begin the program. You can use a "credit clean-up" company to help you improve and restore your credit rating. See similar questions...

When you make your final payment on the judgment to the creditor, have the creditor sign a Notice of Satisfaction (available at the Small Claims Court). If you are not able to get the creditor to sign the Notice of Satisfaction and you wish to have the judgment removed from your credit rating, you must file a Notice of Motion ($75 filing fee) and Affidavit with the Small Claims Court for an order declaring that the judgment is satisfied. See similar questions...

If you're shopping around for an auto loan you should know that when creditors check your credit it places an inquiry on your credit report. Inquiries can add up, which is often interpreted negatively by creditors. For this reason, too many inquiries can actually make getting an auto loan more difficult. See similar questions...