Do you have a question about consumer credit? You may find an immediate answer by using the search engine. If you can't find what you're looking for, please fill out the form, being as specific as possible.
Please note: The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future column.
The information contained in this column if for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding your particular situation.
Please understand that Experian policies change over time. Column responses reflect Experian policy at the time of writing. While maintained for your information, archived responses may not reflect current Experian policy.
Topics addressed on October 17, 2007:
The impact of foreclosure on your credit report
With all the real estate and mortgage problems today I am sure this question has come up before. But, for some reason I can’t find any information on any of the credit bureaus websites. How do the credit bureaus look at a foreclosure on a person’s credit report? Is it as bad as a bankruptcy? How many years does it take for it to go off the credit report?
Credit reporting companies don’t make judgments about the information in credit reports. The credit reporting companies simply show what is being reported them. Lenders decide what the information means to them.
That said, a foreclosure in your credit report is typically looked at by lenders as very negative. It may not be as bad as bankruptcy, but not paying your mortgage and losing your house is very close.
The presence of a foreclosure on your credit report probably will make it difficult to obtain new credit at the best rates, especially if you also have problems with other credit accounts.
A foreclosure remains on your credit report seven years, so it will have a long-term effect on our creditworthiness. But, because negative information is deleted eventually, you can rebuild your creditworthiness if you take control of your debts and build a history of positive payments that will continue to appear after the foreclosure disappears.
Thanks for asking.
- The "Ask Experian" team