Credit Score

[southernbelle]

I haven't filed for BK yet, but considered refinancing this month and was VERY shocked to find that my credit score is 704 (don't know which co.). Apparently, I have too much unsecured debt and cc's are nearly all maxed out. I had no idea what my score was, and just kinda paid bills on time until the financial problems started. It is very shocking to see that most credit scores listed here about a year or two after BK is about the same as or better than mine is now.

It gives me hope that maybe this isn't the worst decision I could make, especially since I have more business and personal debt than anyone could imagine and need some relief and a solution that will work for me. Anyway, thank you guys for listing possible post-BK cc co's, etc. to help reestablish credit. If there are any good companies out there that would help rebuild credit, please post them. It gives the rest of us newbie's hope for the future.

[CityGirl]

Southernbelle,
how much debt do you have total?
I don't have any lates, etc but just a lot of debt and my scores hover around 600. I wonder why?

[southernbelle]

Personal debt – I have 3 cc’s which are all maxed out and the total owed is $14,600. Plus the two unsecured loans I have which are $10k total and business leases which were just paid off. I owe about 105k just from business debt and that includes back taxes and liens, but none of that shows up on my credit report. When I looked at my credit report, there was only one late payment and everything was paid on time. I don’t get it. I haven’t had any problems the last 5 years qualifying for loans, but never knew what my score was until now. I was shocked to see that is was so low. The only thing I can gather is that I had about 4 inquiries within the last month because I was shopping around to refinance and that drops your score with each new one over 2, I think. Maybe someone smarter than me can explain how the scores work to me, but I don’t get it. It also makes me feel that about a year or two after BK, my score will be back to where it is now if I pay everything on time.

[CindyLou]

Given all of the information you posted, I am shocked your score is as high as 704! That is really good score for being maxed out! You weren't able to refi with that score?? You can expect to drop down to mid 500's during a bkand the back to 600's approx 2 years after...just an estimate...everyone is different. It is very helpful to be able to see everyone's scores. The thing with scores is that you will begin to see your scores drop whether you file or not even if you continue to pay on time as your utilization of your credit increases.

[biotechsolution]

If you keep your cards current up to your filing date, your drop won't be much.

Southernbelle:

If you keep the cards current you won't see much of a drop. What kills the FICO score is when you stop paying on all your cards months before filing. Then all those lates and charge offs will affect the score much more.

[frankies_mom]

does anyone happen to know if you do have recent lates, how many months/years of timley payments it takes for your score to start rebounding from the late pay hit?

[Minnymouth]

Normally it takes a year to two years of excellent ontime payments for your credit score to recoup back to what it was before you filed bankruptcy. Also it will vary with how much new credit you apply for after bankruptcy.

[tradewiz50]

does anyone happen to know if you do have recent lates, how many months/years of timley payments it takes for your score to start rebounding from the late pay hit?

If your late after a BK discharge your looking at resetting the 7.5 year clock on the trade. Also, that is the last thing you want to do is be late on a trade line that is reporting after a BK.

Future creditors look at any lateness after a BK as serious issue! In there eyes you screwed up once with the BK. Now your screwing up all over again with the lateness on the trade line.

[Boscoe]

This is for cindylynnsmith -

You mentioned on 8/22 that you guess the scores should be back in the 600's 2 years after bk....and you list your scores when you filed and then several months later.

Can you update where your scores are as of today? Your bk timeline at the bottom of your posts is a year old now...

Will be helpful to all. Thanks.