A foreclosure is one of the most credit-damaging events that can ever appear in your credit history. What's even worse is that foreclosures stay on your credit report for at least seven years.No, a foreclosure won't ruin your credit rating forever. But having a foreclosure on your credit report will lower your credit score until you're able to re-establish good credit — and that takes time.Unfortunately, a low credit score virtually guarantees that you will pay higher interest rates on home and auto loans, credit cards or other forms of credit. How much more will you pay? Experts say that a person with a low credit score, say, below 600, will likely receive mortgage interests rates that are nearly 3% higher than someone with a score above 700. In a worst case, you may be denied credit altogether.
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