Credit Damage Scale
This is the credit rating damage scale in order of severity.
Lower Severity Credit Damage
- Just between creditor and debtor
- No judicial system involvement
- Not of public record
1 Missed & Late Payments (but still paying)
- Less than 30 days in default
- Minimal credit rating damage
- Easily fixable
- Most likely not reported in credit record if less than 30 days late
2 Pre Charge-Off Settlements
- Between 30 to 120 days in default
- Moderate credit rating damage
- Harder to fix
- Most likely already showing in credit report
3 - Charge Offs
- Beyond 90 to 120 days in default
- Debt most likely sold to junk debt collectors or similar collection operations
- Hard but possible to fix
- Removable by agreement & credit repair
Higher Severity Credit Damage
- Judicial system involvement
- Of public record
4 - Law Suits & Judgments
- High chance of garnishment
5 - Evictions, Foreclosures, Liens & Repossessions
- Issue of most concern by lenders, and landlords
6 - Bankruptcy
Notes:
- No legal advice provided
- Credit impact also affected by debt to income ratios
