A short sale has the exact same impact as a foreclosure. When the bank or lender reports your short sale to the credit bureaus, they generally treat the foreclosure as well as the short sale as a delinquency. The credit bureaus, in turn, submit their data to Fair Isaac & Business, the people that compile the FICO score from your credit bureau records. FICO makes no distinction between foreclosures, short sales and deeds-in-lieu of foreclosure. In fact, they lump them all together and treat them accounts”not paid as agreed” Fixing your credit after a sale will take time and discipline.
Pay your bills on time. FICO weighs recent credit history over ago, so a year or two of on-time payments might help erase a past filled with late payments.
Maintain low charge card balances. This raises your available credit amount, which helps you appear to have disposable income enough to take on more debt.
Keep old charge cards with great payment histories open. Should you have to close credit card accounts, then shut the newer ones.
Utilize the credit cards sparingly, but do utilize them. Make certain that you can cover the purchases through the next billing cycle. This will help construct a history of payments.