- You’re 30 days late (or more) paying a bill. You could see a 60- to 110-point drop in your score by being a month late on a financial obligation. Expect more of a drop if you’re 60, 90 or 120 days late.
- You have gone through foreclosure, a short sale or bankruptcy. A typical drop after a foreclosure is 85 to 160 points. A short sale will result in a substantial drop in credit score, too. A bankruptcy could push down your score by 130 to 240 points.
- You’re maxed out. Being close to (or over) the credit limit on all your credit cards can definitely hurt your score.
Everyone’s situation is different, and how long these credit-score drops remain in effect vary. The key to rebuilding your credit is to pay your bills on time and avoid using all of the credit that’s available to you.
Although a “perfect” credit score can be over 800, remember that to get the best deal on your next mortgage, you’ll need a score of around 720 to 780. Want to learn more about your credit score? Read this article.