[ajross]

They'll have trouble getting another mortgage, that's true. But that's surmountable if you're happy with renting and/or can find a co-signer for your loan. Similar things are true for automobile loans.

But generally when people talk about "damaged credit", they mean an inability to get a credit card. And there, I'm willing to bet there are plenty of banks willing to do business with people with foreclosures on their records. The revenue model for credit cards is based on fees, not loan risk.

[wisty]

I wonder if credit card companies prefer people with a slightly dodgy credit rating, as they are more likely to get hit with late fees?