Foreclosure is a situation in which a borrower stops making any further credit payments to the bank or the financial lending institution that lent the loan to the borrower. In this case, the bank or the financial lending institution attempts to recover the amount of loan from the borrower by forcing the sale of the assets of the borrower through auction or other means.

Credit Score After Foreclosure

The foreclosure, apart from all the stress and tension that is caused by it, has serious negative impact on your credit report. Your credit score goes down, taking a serious hit. Moreover, the foreclosure's adverse effect on your credit reports does not go away quickly. In fact, they stay there on your credit report for a period of around 7 years.

However, an individual can improve his or her credit score after foreclosure. There several techniques that can be applied by the individual to rebuild his or her credit score after the foreclosure; you can use your existing credit cards. You need to make sure that you do not make any expensive buy that you cannot pay back in a month's period. Make sure, you always pay your credit payments on time and also, try your best to stay away from your credit limits.

What is a credit score




About Fico scores

About Fico Scores



How are credit scores calculated?

How Are Credit Scores Calculated





Explanation of credit score ranges

Explanation Of Credit Score Ranges



Bad credit score


Good credit score


Very Good




Other things you can do to improve your credit score

Other Things You Can

The credit score ranges from 300 (the lowest credit score possible) to as high as 850 (the highest credit score possible). Higher you credit score, greater are your chances of getting your loan or credit request accepted quickly.

However, if you are facing issues with your low credit score, following are some of the tips or techniques that you can use to improve your credit score:

You should start by minimizing your total debt. The increase in your total debt value is going to affect your credit score negatively.

You should also be very careful with your bills and other credit payments. If you pay them on time, this will gradually improve your credit score.

Have a closer look at your credit balances. You do not want to cross the credit limits because they deteriorate your credit score.