Scores DO THEY GO UP WITH DISCHARGE

[NOMOREBADCREDIT]

Scores do they go up with a discharge. i ask this because a lot of bad items was removed from credit report and my scores are low. and whats the best way to get them back up thanks.

[HeatherB]

That depends. If you pay all your bills on time and then file, of course, your scores will go down. If you have horrible credit already, it probably won't affect them too much. Think of it this way, if you have 3000 dollars worth of payments going out each month on various things.... and only are paying a small portion of them and not on all of them, it shows up. That lowers your score. All of a sudden, you file and have virtually no money going out, that makes you look better. (Please keep in mind that I am not advising anything here and that the bankruptcy on your report will look bad... across the board) Of course, your credit score will not JUMP UP. But it will let you be able to rebuild.

The best way to get your scores up is pretty much to live within your means, use small amounts of credit and use it often and responsibly. On time payments every month. Only use about 1/3 of your total availible credit. Pay off credit cards each month. And nothing heals and repairs your credit like time. More time goes by and you're keeping everything small and simple and paying on time. Those are the keys.

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Just opinions here.... advice..... I'm not an expert, though.

[SinkingFast]

We actually saw an upward bounce after Discharge.

It wasn't the actual BK Discharge that caused it. More from the tons of debt owed that dropped off our Credit Reports. Suddenly we didn't owe anyone a penny.

So BK Discharge doesn't actually improve your scores. It's more the lifted load from the weight of all the debt that had been dragging your scores down.

[CindyLou]

Time, patience, time, and more time!!!!!!!

[EveryDayAdam]

just remember how your credit score is determined:

35% of your score is determined by your payment history
30% by how much you owe...

if you owe a LOT of money, which if you are considering bankruptcy, you probably do...then the 30% of your score that is determined by how much you owe is already pretty low.

now...wheather your score will go up or done depends on your current credit history: if you have a perfect payment history, then you are getting almost all of the 35% of your score from your payment history. If you file for BK, then that score is gonna drop to just about nothing...so this will lower your score. However, if your credit history is already shot with late payments, charge offs, collections, etc. then there already isn't much there to lose.

now on to the part of your score that is made up of how much money you owe: If you're filing for BK, then you probably owe a LOT of money. This means that your score on the amount of money you owe is probably about 1/2. You have to owe a hell of a lot of money to get a 0 on that. But when you file for BK, then all the money that you owe is GONE. You don't owe it anymore. So this part of your score becomes nearly perfect...only time it might not is because of student loans, or other secured debts that you decide to keep.

so: if your payment history is shot, then you aren't going to lose much with the BK, so your payment history part of the score will go down very little, but your amount owed part of the score will go up up up. In this case, you will actually see your score rise, even if just a tiny bit.

If you still have good payment history, then your score will go down, because the BK will dramatically lower this portion of your score...it will be offset somewhat by not having any more debt...but not much

I hope that helps you understand how it works...basically, if you're already behind on your bills, then BK isn't going to affect your score very much, and may actually help improve them. However, if you haven't missed a payment at all, then your score will drop.

Good news if you haven't missed a payment: your score after BK will recover more quickly than if you had a bad payment history prior to BK...so as the BK gets older and older, your score will rise faster and faster.

[NOMOREBADCREDIT]

Thanks everyone

[dscurlock]

Scores do they go up with a discharge. i ask this because a lot of bad items was removed from credit report and my scores are low. and whats the best way to get them back up thanks.

I was just told by a mortg broker that cc balances that are below 50% work better on scores then if your credit line is over 50%, then it does not help your score...I think he was saying, keep a up-to-date balances on your credit cards to show you are paying, just do not exceed 50% of your credit line....how true this is, i do not know.

[aa06a47]

I was just told by a mortg broker that cc balances that are below 50% work better on scores then if your credit line is over 50%, then it does not help your score...I think he was saying, keep a up-to-date balances on your credit cards to show you are paying, just do not exceed 50% of your credit line....how true this is, i do not know.

I hear 28% is the magic number you want to shoot for. 50% is a little high.

[aa06a47]

In my case, when I filed BK, my scores dropped from 700+ down to around 525. When the creditors started showing the balance as Zero, the score popped back up to high 600's. Then, after a couple of months, it dropped back down to upper 500's.

I'm in a chapter 13, so not much credit rebuilding except my mortgage payment. My scores have went up some, but still low 600 range.