History

• Fair Isaac created the FICO scoring model in 1989 in partnership with Equifax. The name of the score at this time was BEACON.
  
  

Significance

• According to Fair Isaac, the FICO score is the leading score used by lenders. How high or low your score is can determine if you're approved for credit or denied.
  
  

Effects

• How well you pay your bills accounts for 35 percent of your FICO score. A foreclosure is a debt obligation that was not kept, and it will drop your FICO score by 140 to 150 points.
  
  

Time Frame

• A foreclosure remains on your credit report for seven years. There isn't a way to remove it during this time and it is a matter of public record.
  
  

Warning

• A foreclosure on your credit report may prevent a bank from approving you for another mortgage loan. If you are approved, it may be at a higher interest rate.