Does non pay of CC and mortgage affect FICO different?

[cary_bouldin]

Mortgage is already behind on second home, house will to go foreclosure, is there any real benefit to paying the credit cards?

Primary home is current but underwater too, won't try for a modification on that one until the dispostion of the second home is completed, too much stress at this point and NACA can't work with two homes.

Don't care if the CC's close out but was wondering if there is any real difference if there is a foreclosure as well as credit card defaults or do they just get looked at the same way?

If there are any posts related to this, please feel free to refer me there.

[Moe Bedard]

It will make it worse, but a foreclosure will hit it approx. 300 points, so another 100-200 for defaulting on a few cc's may be no big deal. You can possibly look into bankruptcy and wipe those debts out or just walk away and wait 7 years for anything credit related.


The first thing you need to ask yourself is--can you live if these creditors get garnishments against you? A creditor can get up to 25% of your paycheck. If the debt is small enough to where it can be paid off rather quickly through the garnishment, then it may not be so detrimental.

Your default on one credit card will definitely increase the rates on your other credit cards. This is because, buried in the fine print of your agreement is a clause called "Universal Default", which simply means that if the creditor perceives a payment risk from you they have the right to jack up their interest rates.

I'd definitely consult with a few licensed attorneys in your state.

Pay cash, less chains and get less mail.