Foreclosure and Public record are the two things that can hurt your credit score the most. Typically these offenses will stay with you and report negatively for seven to ten years. For some the negativity will wear off as time goes by, however, others can continue to mar your credit for a long time.

Foreclosure, Short-Sale and Deed-in-Lieu of Foreclosure each have a significant negative impact on your credit report. Each will typically stay on your report for seven years, and can bring your credit score down as much as 200-300 points. In terms of severity, a deed-in-lieu seems to have the least impact on your score, affecting it an estimated 100-200 points. A short-sale will have slightly more affect and an actual foreclosure affecting your score the most, typically 200-300 points.

This large of hit on your credit will cause a ripple affect on your whole financial life. You will unlikely be able to qualify for a new va home mortgage or re-finance for about 24-72 months, and even then the interest rate may be less than desirable. You may also have a hard time qualifying for financing on automobiles and credit cards for the first 24 months.

Public records are legal documents created and maintained by Federal and local governments, which are usually accessible by the public. Some public records such as divorces, will not affect your credit score, but negative public records such as bankruptcies, judgments and tax liens will take a heavy toll. Bankruptcies can remain on your credit report for up to ten years, judgments will remain for up to seven and tax liens could remain until paid in full.

Judgments and mechanics liens can not only affect your score, but may also stand in your way of refinancing a home or qualifying for a large purchase. Some judgments and liens can be directly attached to your homes' title, and will need to be satisfied before selling or refinancing. It is important to weigh all factors with judgments and liens, you could end up spending more in legal fees and time lost in court than what the original amount was. It is best to contact the lender and try to create an amicable plan to pay off the debt.

When it comes to bankruptcy, this should be the least desirable option when trying to settle your financial troubles. If it's the only option you must understand the three main types of bankruptcy and the individual affects each will have on your credit. Knowing your options is your responsibility. There are three general types of bankruptcy chapter 7, chapter 11 and chapter 13. Chapter 11 primarily concerns businesses so we will not discuss its effects on credit.

Chapter 13 bankruptcy is considered reorganization bankruptcy. It is the lesser of the two bankruptcies. It will not discharge your obligations and is typically used when there is a life altering situation such as a lost job or illness that has severely affected your financial status. It will typically allow you to create a customized plan to repay your debts on a more manageable timeline. Chapter 13 bankruptcy will significantly affect your credit score for seven to ten years. Its affects will lessen as time goes on however. It may or may not affect refinancing of a mortgage depending on whether the home was included in the restructuring.

Chapter 7 bankruptcy is the king of negative marks on your credit report and has the longest affect on your credit score, typically ten years. While it absolves you of your debt obligations it also severely hinders future financial and lending opportunities. This will most likely affect your credit score 300+ points and will remain a very black mark for all your creditors to see.

Foreclosures and public records are often derived out of situations that we have little control over, even so it is very important to consider the long term credit ramifications.