Is this credit score unusual? 690 after filing, before discharge

[ansky0007]

Before filing we were around a 680 to 720 on all bureaus. We filed pretty early which was risky but it helped our scores since we were not dinged with late payments since we were mostly current.

When we filed BK, Our scores dropped into the Mid 500's, When discharged 2 weeks ago our scores went up to around the 600 mark. I immediately stated disputing everything that was negative. Luckily some negative accounts were removed dont know why... Maybe they did not respond to the disputes.

In any case I had many accounts that showed late payments since many creditors reported late payments after we filed.. I was also to get all those lates changed to Discharged (Never Late) since they could not hold me liable for late payments after we filed and our scores went up again.

I also applied for a $1000 secured card through applied bank the day after our 341 and its now reporting current with $1000 limit. I applied for 2 unsecured cards last week just for additional credit building and we were approved for HSBC at $500 and Capital One for $1000.

OUr scores right now are between 650 and 706 so things are looking good.

[2Bshinyandnew]

To the OP, my exhub used Credit Karma to check his pre and post filing scores. I may be off a bit because I don't have the scores in front of me.
Pre-filing Credit Karma was low 500's
After filing, just before discharge it went up to 667
just after discharge it went up another 10 or so points to 677.

As long as you use the same scoring system and are just looking for a general idea, not an actual FICO but an idea of where your score is headed I believe Credit Karma is useful in that respect, as long as you use it for a baseline as well as future score checks. You can't use a real FICO score pre-BK and compare it to a Credit Karma score post BK, make sense? If you check your Credit Karma score today and the again in 30 days, I believe that would give a reasonably accurate depiction of the direction your score is headed.


As far as usefulness of these scores and what they mean, I suspect that any generalizations about credit scores and how consumer bankruptcy affect future consumer credit availability will fly out the window in the next couple of years, staring now. With the sheer increase in bankruptcy filings, how could it not? In 2 years, if 10% (totally made-up figure) of people who apply for credit have a recent BK on their credit report, a creditor is going to react far differently to this than they would have a year ago or even a month ago. They have to, because clearly their gauge of creditworthiness to decide the amount of credit line offered has failed them, unless they are making money by forcing consumers into default...what a concept, LOL ! Our creditors couldn't possibly have anything to gain by consumers defaulting, right? (don't get me started on predatory lending and "the fine print") Sarcasm aside, what worked in the 60's-80's ain't working now.

No one really knows what to expect. For all we know, the whole FICO/ credit reporting systems in place today that lenders rely on could be scrapped! Seriously! We are steps away for Bankruptcy Judges being able to modify mortgages, who knows what the future will bring? We can guess, and share our past experiences, but that is absolutely no predictor of how a similar situation will play out in a year or 2.

We are in uncharted territory! What one creditor did last year in response to a debtor filing BK could be completely opposite next year. In my opinion, I think in general post-BK credit will be available and probably no more difficult to get than pre-BK, the amount of credit already in use/proof of income and ability to pay will likely become stricter. The system will go back to the way it was/should be, a real-life assessment of a debtors ability to repay a line of credit, not some phantasmagorical $50,0000 credit line offered to a family of 4 that makes $70K/year, and already has a mortgage

A generalized "no one with a BK gets/keeps a creditline with us!" Will be a thing of the past if creditors want to evolve with the times and survive this credit mess we are in.

Just my 1cent

[kenshirley]

I don't know that the score will matter a whole lot with that Chapter 7 showing for 10 years. It will affect your credit.
However money talks, put enough down and you can dictate terms on purchases.

[WorkingItOut]

Work, I went up on the link and is does not say how it works - just 'start the free TRIAL'.

Most things like that have you sign up for something and if you don't cnx, they start charging you. Is that how myfico works? - jb

No, ignore the free trial stuff.

Click on "products" at the top, then "fico standard". It's $15.95 for each report. You'll need to buy 3 - Equifax, Transunion, and Experian. It's a one time charge for each but it will give you your REAL credit score that actual creditors see. All of these other services just give you an estimate of what they THINK your credit score is, and in my experience they are rarely even close to being accurate.

Don't buy any of the MyFico subscription stuff unless you just really want to. It's not what you need to check your score.

[jeb]

Click on "products" at the top, then "fico standard". It's $15.95 for each report. You'll need to buy 3 - Equifax, Transunion, and Experian. It's a one time charge for each but it will give you your REAL credit score that actual creditors see.

Wow - since my 'real' score really doesn't mean much after a BK, I see absolutely no reason to spend that kind of money to check it.

500 or 790 - with BK showing it has little meaning as to what you can expect for a loan.

Think I will pass on this one. - jb

[ready2puke]

Does he have a brother? lol

Fortunately, I don't plan on actually using my credit for a long time.

I'm lucky I guess. My bankruptcy is at an ideal time because I'm getting married in 2 months, and my future husband has a good enough career and good enough credit for me to piggyback off of his score for a few years until I can add my name to things without dirtying the pool. I just thought it would be interesting to see how low it was.

Thanks for the hot tip though lol

Glad to hear its not affecting you too much in that way..

[meow44]

this is why i dont have a credit card...

simulation rachat de credit

[shabam]

But just remember your score doesn't mean a thing because most creditors run and hide when they see the BK on your credit reports. Congratulations on your upcoming wedding and best of luck to you both!

And you know that is stupid when you think about it. Someone who has filed can no longer file for another eight years. While I'm not saying they should offer people 2006ish credit lines, they should have enough knowledge of the process to know that anyone post discharge with a stable salary is probably a sure bet.

[shabam]

the amount of credit already in use/proof of income and ability to pay will likely become stricter. The system will go back to the way it was/should be, a real-life assessment of a debtors ability to repay a line of credit, not some phantasmagorical $50,0000 credit line offered to a family of 4 that makes $70K/year, and already has a mortgage

Lending should become stricter. We the user has to explain ourselves and be possibly charged with fraud depending on how we acquired and used the credit, yet the creditors do not have to explain anything. The law currently assumes that the credit by default always does the 'right thing', while the user must be to blame. Until we change the system to reflect that of other countries overseas, many will be back here and nothing will change.

When living in the UK, I couldn't get a credit card without showing 2 pay stubs. The line of credit was also reasonable and realistic. Whereas, here I was able to acquire $20K without even having a job. All they asked was household income. Yet if I end up in court, it's my ass that is on the line not the credit card company or their ambiguous and vague "household income" requirements and zero verification.

The UK credit application required I list assets, debt, exact employer, exact position held and so on. Over here, everything falls on the consumer. Over there, they (the creditor) lent the money so they took the risk. Rightfully so, they have very little recourse in court if you don't pay. If the creditor handed out credit they way they do here, I am sure the judge would throw them in prison too for their recklessness. It is their responsibility to verify information. They cannot just throw in a legal clause, washing their hands from any responsibility.

The sad thing is that to this day not one of the *******s who played a part in this financial mess is in prison for it. Yet the users are paying for it, in more ways than one.

[kenshirley]

I am not sure that what the score says matters very much.
The fact that the BK will be on the record for 10 years is what will hurt you.

[DustinLH00]

Does anyone know what happens in the cases of reaffirmation? When I file, I will be reaffirming my 1st and 2nd mortgages and my car loan. Since those will still be active tradelines on my credit report, I really shouldn't need to apply for a CC to start re-establishing credit, correct? I would think that having 3 loans out there still, with 0 negatives on them would be "building credit". Any thoughts?

Sorry, didn't mean to hijack your thread. I will repost. Thanks.

[Amy26]

I have a zero balance bank of america credit card right now... do you think it will stay open after the bankruptcy or do you think boa will find out and close it? I don't have anything else with them except a bank account.

[shabam]

They'll close it. Using various sources the banks run daily checks to see who just filed for BK.

[Amy26]

Meh ok...

It was actually such a relief when I moved to Denmark because they don't have credit there. I was so thrilled to be getting away from it. I think our system is rediculous. 1st... when you have no credit, you have a hard time getting credit because they tell you that you need it. Then, when you start applying for stuff you get inqueries... well those are bad too...and if you're shopping around for the best loan or offer...then you're still screwed. Then you get credit and it gets out of control and then you can't get any more credit or you get stupid interest rates... it goes on and on.

In Denmark... you have a bank. You have a bank debit card. If you need extra cash in a month to make a big purchase or something... you call your bank and they give you permission to go negative for a while. If you need a loan, you call your bank...they look at your income ... if it fits into your budget... you get the loan at a very low interest rate. If you go through a hard time and don't have extra money to pay your loans, you can call them and have the payment reduced for a while. Its so simple but works so well. The bank also handles all your bills. Every bill you have goes through the bank and they keep a budget account for you and pay your bills. You don't have to do anything. No wonder Danes are so happy.

I had my credit union decline me for a loan because my credit score was off by 1 point from what they wanted... 1 point! And they wouldn't budge... I really hate our system.

And also on subject of how people are regarded as "bankruptcy filers" now... we were shopping for an apartment this past weekend. And it was crazy the amount of people looking. But, when we asked about their income requirements/approval process most of them said "if your income qualifies you, you're in". I have NEVER heard an apartment complex say this. And these are high end properties...the property we went with was brand spanking new and I swear the dude didn't even look at my application and I don't think they checked my credit. They just ran me through the computer to see if I had any bad rental histories and then made sure my income was good enough... that was it. So, I really think the stigma is already lifting a bit. At least in the real estate sector.

[jennordhavn]

Meh ok...

It was actually such a relief when I moved to Denmark because they don't have credit there. I was so thrilled to be getting away from it. I think our system is rediculous. 1st... when you have no credit, you have a hard time getting credit because they tell you that you need it. Then, when you start applying for stuff you get inqueries... well those are bad too...and if you're shopping around for the best loan or offer...then you're still screwed. Then you get credit and it gets out of control and then you can't get any more credit or you get stupid interest rates... it goes on and on.

In Denmark... you have a bank. You have a bank debit card. If you need extra cash in a month to make a big purchase or something... you call your bank and they give you permission to go negative for a while. If you need a loan, you call your bank...they look at your income ... if it fits into your budget... you get the loan at a very low interest rate. If you go through a hard time and don't have extra money to pay your loans, you can call them and have the payment reduced for a while. Its so simple but works so well. The bank also handles all your bills. Every bill you have goes through the bank and they keep a budget account for you and pay your bills. You don't have to do anything. No wonder Danes are so happy.

I had my credit union decline me for a loan because my credit score was off by 1 point from what they wanted... 1 point! And they wouldn't budge... I really hate our system.

And also on subject of how people are regarded as "bankruptcy filers" now... we were shopping for an apartment this past weekend. And it was crazy the amount of people looking. But, when we asked about their income requirements/approval process most of them said "if your income qualifies you, you're in". I have NEVER heard an apartment complex say this. And these are high end properties...the property we went with was brand spanking new and I swear the dude didn't even look at my application and I don't think they checked my credit. They just ran me through the computer to see if I had any bad rental histories and then made sure my income was good enough... that was it. So, I really think the stigma is already lifting a bit. At least in the real estate sector.

Wow, that's really interesting about Denmark. My Dad was born there and came here when he was 8, but my Farmor and Farfar never told me that about credit. How does one buy a house in Denmark? They don't have mortgages? I have some Danish relatives coming this weekend for an All American BBQ at my parents house, I will have to discuss this with them.