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windsorn001

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If i default on a loan how will it effect my credit
I got screwed into getting a rainbow cleaning system that costs $3000 and had to get it financed with them through a company. If i default on that loan (because i can't afford the payments right now) how will it effect my credit? my score is 700 right now

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It will definitely hurt your credit score for at least 7 years.  How many points it will drop;- nobody can say for sure.  If they decide to file a suit and get a judgment against you, that will hurt even more, plus a judgment stays on your report for 10 years.  Try your best to work out something with them.  Perhaps they'll take the item back and you can at least stay away from a suit & judgment.  If you feel they used deceptive practices when selling you the item, you can always check with the Federal Trade Commission and the Consumer Financial Protection Bureau and file complaints against them.  Just Google or Bing those names and you'll get the websites.  Good luck!

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