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How Can I Get My Short Sale to Not Affect My Credit Score?

October 3rd, 2014 8:02 AM by Jackie A. Graves, President

How I Can Get My Short Sale to Not Affect My Credit Score?

Short selling allows you to avoid foreclosure on a home.

Unfortunately, there is no way to avoid the damage a short sale does to your credit score.  A short sale can knock as much as 160 points off your credit score.

A loan that is paid by a short sale could be reported as a charge-off, a settlement, a deed-in-lieu of foreclosure, or “settled for less than the full amount due” on your credit report.

It takes time for your credit to recover after a short sale. Credit scores place the most emphasis on the most recent 24 months.  So you can expect your credit score to slowly begin to recover in a couple of years or so.

To rebuild credit after a short sale, do everything you can to stick to credit-positive behavior.

Pay bills on time, keep credit card balances low and only take on new credit as needed.

If you have credit card debt, getting a plan to pay down those balances will help your credit score as well.  Your amount of debt accounts for 30% of credit scoring and lowering your credit card balances will help to improve your credit utilization and boost your credit score.

Getting your credit card balances down to less than 10% of credit limits is optimal for your credit score. And paying off credit card debt entirely is good for your wallet.

Monitor your credit and chart your credit recovery post-short sale with’s free credit tools. You will receive two free credit scores, with monthly updates, plus customized credit tips for improving your scores.

Keep close tabs on your credit by reviewing your credit reports from each of the three major credit reporting agencies — Equifax, Experian and TransUnion. You can request a free annual report from each by visiting

By Lucy Lazarony | To view the original article click here

Posted in:General
Posted by Jackie A. Graves, President on October 3rd, 2014 8:02 AM


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