30-Day Late Mortgage Payment has Dire Consequences on FICO Scores

Joan Gaskin, director of FICO mortgage markets, compiled data to show the impact that one 30-day late mortgage payment can have on a person’s credit report. Gaskins says that one of the reasons for FICO’s recent revelation in credit impacts was to “counter incorrect information, such as recommendations that people stop paying their mortgages so they can negotiate with a lender.”

The severity of a FICO score decrease will partly depend on where your credit score started before the 30-day late payment. The consequences can cause a high starting score to become mediocre. The decrease in a lower starting score could make acquiring credit difficult and expensive. What is more, the length of time it takes to recover your credit score from that single hit could range from 9 months to 3 years. http://on.wsj.com/hvzq1r

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