Are Late Payments as Bad as Foreclosure on my FICO Score?

A 90 day late payment

has the same negative effect as a Foreclosure!

What very few consumers are aware of is,  that a 90 day late payment by itself has the same exact effect on a credit score as a foreclosure. Fair Isaac\'s classic fico model is designed to determine the liklihood of someone going 90 days late on a particular loan obligation over the next two years.

Once someone goes 90 days late, since that is the event the scoring model is trying to predict, anything beyond that is a moot point and will not cause an additional decrease in the score.

While it is true that a foreclosure does make a person more of a credit risk overall, the classic fico model is not telling you if they are a risk overall other than the risk they will pay 90 days late over the next two years.

Whether they are a risk to file a bankruptcy or whether they are a risk for defaulting 5 years down the road is not what the score is trying to predict.

If you would like a no obligation phone consultation to discuss your particular credit issues and how to raise your scores by 20, 50 or even 100 points, please call us Today at

(800) 564-1500