There are a number of factors that go into calculating your credit score, and various lenders have different definitions of which scores they consider to be good or bad. There are, however, a few issues that will always drop your score dramatically and send up red flags to lenders, such as bankruptcy and foreclosure. Other examples include: Charge-Offs: A formal acknowledgment by a credit card company that they’re writing off the debt you owe as noncollectable (usually after 180 days of delinquency) Short Sales: An agreement with your mortgage lender to sell your home at a loss in order to satisfy a mortgage you cannot afford Repossessions: Having a bank or dealer take away your vehicle or other belongings due to auto loan default Judgments: Money a judge orders you to pay in settlement of a civil or criminal lawsuit Tax Liens: Money you owe(d) the government for taxes that were not paid on time Late Payments: Paying any installment or revolving debt payment more than 30 days after the due date Collection Accounts: Debt that has been turned over to a collection agency