Selling your home could affect your credit score, although perhaps not in the way you think. If you want to learn more about how a mortgage repayment affects your credit score, the next section provides some specific details. By the way, the actual sale of your home won't affect your credit rating at all. Credit ratings are a calculation of how you use credit, not a measure of your assets.
Ultimately, the impact on your credit is in the hands of credit reporting agencies. Although some market experts say there is no difference in credit rating between a short sale reported as a deal and a foreclosure, others suggest that short selling may have benefits. Having a mortgage with a positive payment history is often viewed positively by lenders. It's generally the most substantial credit commitment people have; therefore, it's a good indicator of credit risk.
On-time payments are an indicator of low risk, but late mortgage payments are a strong indicator of high loan risk. It's a common belief that a short sale of your home does less damage to your credit ratings than foreclosure. The bank would prefer that you devote the effort to selling your home rather than taking on that burden itself. If you are concerned about how the sale of your home will affect your credit, you should know that it may have little or no effect on your credit score.