Credit Implications Your FICO score will drop by over 100 points due to foreclosures, according to Barry Paperno, consumer operations manager at Fair Isaac. Your FICO can also drop for short sales, if the sale was reported as settled for less than what was due. This may seem like a relatively small amount for a default on a major asset, but it's enough to cause credit card companies to consider rate hikes and credit limit decreases, and for insurance companies to raise premiums. (Learn more about your credit rating in our article: Consumer Credit Report: What's On It.)